Lifts Bitcoin Price to $60K: The price of Bitcoin (BTC) increased by more than 2% the previous day, and during Wednesday’s early European session, it briefly traded above $59K. On the other hand, the flagship currency has had difficulty breaking out of its recent consolidation below the 200-day Moving Average (MA). The prospect of additional crypto capitulation still grips the sector. On Wednesday, Bitcoin’s fear and greed index was approximately 28%, down from 44% last week.
Last week’s Bitcoin price action below $61,000 confirmed a potential double top and negative divergence on the weekly Relative Strength Index (RSI), all of which point to a pessimistic sentiment in the near and medium term. Hence, another retracement towards $48K is likely unless Bitcoin price regains the support level around $61,000 in the next weeks.
Bitcoin Whales Grabs the Opportunity
The network has seen increased on-chain activity in the last several weeks, spearheaded by whale traders, after the BTC price encountered a substantial resistance level of approximately $73k. For example, a prominent Bitcoin investor bought 10,000 Bitcoins during the recent selloff. According to Coinspeaker, the spot Bitcoin exchange-traded funds (ETFs) in the United States have received almost $600 million in the last three days, with BlackRock’s IBIT receiving the most of this money. Despite the price volatility, more and more institutional investors have added Bitcoin (BTC) increased to their portfolios.
However, the German government has sold nearly half its original Bitcoin holdings in the last three weeks. According to an on-chain data analysis offered by Arkham intelligence, the German government possesses roughly 23,96k Bitcoins, almost $1.4 billion. At the same time, creditors can anticipate that the Mt. Gox repayments would continue for at least another three months before the collapsed FTX starts paying out about $16 billion.
Economic Outlook
Despite institutional investors spearheading Web3 adoption, the crypto business has persisted in further widening the correlation with the stock market. However, if the Federal Reserve starts cutting interest rates later this year, the cryptocurrency market expects a huge bullish breakout. Friday’s PPI data and Thursday’s US CPI data will reveal additional details regarding the economic forecast.
However, many see the approaching US midterm elections as a catalyst for optimistic sentiment across the board in the cryptocurrency market. The cryptocurrency issue has quickly become a hot topic in the presidential campaigns of both major parties.
Long-term Picture
Similar to the bull run that occurred in 2017 and ended in early 2018, the price of Bitcoin (BTC) has increased, and it is currently in a macro-rising trend. Even though the price of Bitcoin could fall to as low as $48k in the coming weeks, most analysts expect that the digital currency will end this year trading at a minimum of $100k. Moreover, the forthcoming listing of spot Ether exchange-traded funds (ETFs) in the United States will result in additional capital injections into cryptocurrency investment products.
Final Thoughts
The recent whale activity Lifts Bitcoin Price to $60K is a significant development in the cryptocurrency market. It reflects a renewed optimism among large holders and suggests that they believe the digital asset is poised for further gains. However, whether this marks the end of the correction is uncertain.
Investors should consider the broader context when making investment decisions, including market sentiment, macroeconomic conditions, and technological developments. Additionally, they must remain aware of the potential risks and challenges that could impact Bitcoin’s price.
In the ever-volatile world of cryptocurrencies, staying informed and agile is key. While the signs are promising, the journey ahead will likely continue to be marked by opportunities and challenges. A cautious and well-informed approach is advisable when navigating the dynamic landscape of Bitcoin and other digital assets.
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