Bitcoin Climbed Above $72,000
Bitcoin has fully recovered its losses since the beginning of April, rising above $72,000 at the start of the new trading week. What is the reason for this growth?
At the time of writing, Bitcoin was trading at $71,161, up 3% overnight. Thus, the main cryptocurrency managed to fully recover its losses after a 9% drawdown in early April. The asset continues to grow.
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Bitcoin opened the week with gains, leading the market to liquidate $115 million dollars in the last 24 hours. In the last hour alone, 20 million dollars worth of short positions were liquidated in the digital asset market.
One of the possible reasons for Bitcoin's rise is the market's anticipation of March inflation data. This week, investors are expecting a number of macroeconomic events and data releases. On April 10, the U.S. will release CPI data for March, and the following day the FOMC will release its meeting minutes. The probability that the Fed will leave interest rates unchanged in May is 93.3%.
Bitcoin Investment Essentials, A Sneak Peek at This Week's Biggest Events (4/8-4/14)
— Greeks.live (@GreeksLive) April 8, 2024
There are more macro events and data this week, mainly a number of U.S. economic data and interest rate resolutions from major central banks around the world. This month, the major central banks…
Meanwhile, Bitcoin whales continue to accumulate assets. CoinGlass speculates that if Bitcoin reaches the $72,000 mark, it could prompt whales to increase their holdings, driving the price up. Analyst Ali Martinez also noticed that a significant amount of Bitcoins have been withdrawn from cryptocurrency exchanges over the past month: about 111,000 BTC (worth about $7.55 billion). This shows that investor confidence is on the rise.
In the last month, almost 111,000 $BTC, valued at approximately $7.55 billion, have been moved out of known #crypto exchange wallets! pic.twitter.com/c7cy4BKvFk
— Ali (@ali_charts) April 6, 2024
Another important indicator affecting Bitcoin's pricing dynamics is activity on Bitcoin ETFs. According to analyst firm Santiment, flows to ETFs are likely to remain high until halving, which could also point to further growth in the main asset. Last week, inflows into Bitcoin ETFs totaled $485 million.
📊 #Bitcoin #ETF volume hasn't slowed down four weeks after the $BTC #AllTimeHigh. Among $GBTC, $IBIT, $FBTC, $ARKB, $BTCO, $BITB, and $HODL, trader activity is still notably higher than the turning point that began in late February after an influx of individual trading began… pic.twitter.com/LErr5T8BWF
— Santiment (@santimentfeed) April 7, 2024
Some analysts have pointed to bullish indicators that could take the Bitcoin price to the $86,000 mark before the end of April. An analyst from Crypt BB pointed out the bullish ascending triangle forming on Bitcoin's chart during this period of consolidation, which allowed him to make such an optimistic forecast.
From a technical point of view, Bitcoin managed to overcome the resistance level of $69,500, which started a new rally. The bulls managed to overcome the resistance level of $70,300 quite quickly, which brought the asset to the current level of $71,200. A serious resistance level at the moment is the $72,000 mark. A move higher could take Bitcoin to the next resistance level at $73,500. In addition, if Bitcoin manages to overcome the all-time high of $73,808 in the near term, the next target will be $75,000.
This is not a one hundred percent statement, the cryptocurrency market is volatile. Investors should exercise caution when making decisions.
