Bitcoin Price Surges 2%, Sparks Crypto Market Recovery

Bitcoin Price Jumped 2% Within Hours, Sparking a Crypto Market Rebound for ETH, SOL, XRP, TON, DOGE, and SHIB.

During US hours, the cryptocurrency market witnessed a surge in trading volume as the price of Bitcoin (BTC) surpassed a descending trendline. Has the cryptocurrency market recovered, or has it merely staged a false breakout? 

In the course of an hour, the price of Bitcoin increased by over 2% as investors re-invested capital into the cryptocurrency after chart patterns validated a breakout above the trendline.

A few hours later on Thursday, the price of Bitcoin recovered from $60,630 to $62,585 following the breach of a three-day descending trendline in a lower timeframe.  

As bands broaden, the Bollinger bands indicator demonstrates increased trading volume. Additionally, the BTC price surpasses the 20-SMA, verifying a robust price rebound. 

For bullish momentum, the Ichimoku Cloud indicates a trend reversal within the shorter time frame. A break in the base support further validates the occurrence of a recovery. Traders need to look for confirmation in a higher timeframe for a massive rally in BTC price. 

The fact that the Bitcoin price has surpassed the cloud and that the cloud itself is green indicates favorable BTC price action in the coming days. Bitcoin must surpass $66K and $70K to reach a new all-time peak.

Moreover, the Bitcoin price breakout sparked a broader market recovery within hours, as ETH, SOL, XRP, TON, DOGE, ADA, SHIB, and additional altcoins also rose in value. 

Whales Bought The Dip

This may be the last decline in the price of Bitcoin, as billionaires amassed approximately $950 million worth of BTC a day ago. When whales purchase at the bottom, a cryptocurrency rally typically ensues. 

Wallets containing 1,000 to 10,000 BTC have amassed over 15,000 BTC worth nearly $941 million, according to CoinGape. This indicates that BTC whales remain optimistic despite the price falling to $62,000. Whale accumulation significantly contributes to the favorable outlook for an entire cryptocurrency market. 

In contrast, the US dollar index (DXY), which had risen for three consecutive days, has declined to 105.25 today. The yield on the 10-year Treasury note (US10Y) dropped today.

As Bitcoin fluctuates in the opposite direction of the DXY and Treasury yields, the decline aided Bitcoin’s ascent. Traders anticipate additional remarks from Federal Reserve officials to gain insight into the trajectory of the market and the economic outlook. 

Liquidated Positions

According to CoinGlass data, more than 61,000 traders were liquidated within the previous twenty-four hours. The greatest single liquidation order occurred on the cryptocurrency exchange Binance when a BTCUSDT transaction was executed for $965.08K. This suggests that traders continue to exercise caution in the face of a significant decline in trading volume. 

Over $142 million were liquidated across the crypto market in the last 24 hours, with an increase in short positions liquidation in the last 4 hours.