Bitcoin

when

Over this past weekend, Bitcoin (BTC) experienced a significant rally, pushing its price above $63,000—an increase of 5.6% since hitting a low below $60,000 on Friday. This unexpected surge occurred despite a lack of major news triggers, leading to speculations and analyses concerning the underlying causes. Here’s a deep dive into three key factors that might explain this weekend’s price action. 
<h2 id="1-mysterious-bitcoin-whale-activity">#1 Mysterious Bitcoin Whale Activity</h2> 
According to DeFi^2 (@DefiSquared), the number one ranked trader on Bybit and a leading wallet on DeBank, a mysterious “whale” has been active in the Binance perpetual futures market. DeFi^2 <a href="https://x.com/DefiSquared/status/1807326724658753694" target="_blank" rel="noopener nofollow">noted</a> significant buying activity from this entity, stating, “Since the local BTC lows on Friday, almost the entire bounce this weekend is from a single entity on Binance Perps that has hammered over $450 million in buys in 500 BTC blocks at a time during the lowest liquidity hours of the market.” 
DeFi^2’s analysis sparked speculations about the whale’s potential strategies, especially considering the impending <a href="https://www.newsbtc.com/news/market-analysis-how-will-mt-goxs-bitcoin-distribution-affect-crypto-prices/" target="_blank" rel="noopener ">Mt. Gox distribution</a>, which could further influence Bitcoin’s liquidity and price stability. He elaborated, “Curious what the endgame is right before the start of Mt Gox distribution. With a position of this size, in order to exit they’ll either need to run the market high enough to cause a short squeeze, or end up becoming a massive cascade risk if the market goes against them.” 
<h2 id="2-open-interest-build-up">#2 Open Interest Build Up</h2> 
Crypto trader Daan Crypto Trades (@DaanCrypto) provided insights into how the futures market contributed to Bitcoin’s price movements. His focus was on the relationship between open interest and market price, a critical indicator of market sentiment and potential future volatility. 
“During this run up, we’ve mostly seen Open Interest rise with a few relatively small short squeezes and some long profit taking in between. I think there’s a lot of underwater shorts from the ~$60K region that should get squeezed out if price were to keep grinding higher. That $65K region is still a big area to watch out for,” Daan <a href="https://x.com/DaanCrypto/status/1807662164934578290" target="_blank" rel="noopener nofollow">wrote</a>. 
Interestingly, open interest on Bitcoin increased from $30.97 billion on Saturday to $32.21 billion by Monday, based on <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">data</a> from Coinglass. Despite this rise in open interest, the weekend did not see substantial short squeezes. The liquidation of only $35 million in BTC shorts during this period was relatively modest compared to past events, such as on May 20 when the price surge from $66,000 to $71,500 resulted in $84.2 million in short liquidations. 
<img loading="lazy" decoding="async" class="wp-image-627154 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/GRYariYXIAANyQ0.jpg?resize=1321%2C795" alt="Bitcoin analysis" width="1321" height="795" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/GRYariYXIAANyQ0.jpg?resize=1321%2C795?w=1321 1321w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRYariYXIAANyQ0.jpg?resize=1321%2C795?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRYariYXIAANyQ0.jpg?resize=1321%2C795?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRYariYXIAANyQ0.jpg?resize=1321%2C795?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRYariYXIAANyQ0.jpg?resize=1321%2C795?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRYariYXIAANyQ0.jpg?resize=1321%2C795?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> #3 Technical Breakout 
Another contributing factor was likely a technical breakout for Bitcoin, which shifted the market momentum. Popular crypto analyst CRG (@MacroCRG) <a href="https://x.com/MacroCRG/status/1807549673709932867" target="_blank" rel="noopener nofollow">described</a> the weekend’s price movement as a “beauty of a breakout.” He highlighted that both funding rates and the perpetual futures basis remained flat, which usually precedes a strong market move. 
“That’s a beauty of a breakout. Funding + perps basis flat. Weekly close in 1H + weekly candle is a ginormous pinbar with an 8% wick (high probability reversal candle). Full send,” he stated. 
<img loading="lazy" decoding="async" class="wp-image-627152 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478" alt="Bitcoin breakout " width="2550" height="1478" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=2550 2550w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRW0qpya4AAINWr.jpg?resize=2550%2C1478?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
The technical analysis shows Bitcoin breaking a descending trendline that has been in place since it peaked at about $72,000 in early June. The break through this trendline on the 4-hour Binance chart, as noted by CRG, signals a potential reversal from the recent bearish trend. 
Moreover, the BTC weekly close presents a significant bullish signal—a large pinbar candle with an 8% wick—indicating potential for upward movement. 
At press time, BTC traded at $63,232. 
<img loading="lazy" decoding="async" class="wp-image-627153 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675" alt="Bitcoin price" width="3628" height="1675" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-01_09-57-04.png?resize=3628%2C1675?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Bitcoin Price Blasts Past $63,000: Top 3 Reasons

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Andre artikler udgivet 1. jul. 2024

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