Cryptocurrencies have navigated a difficult period over the past year, and while many investors believed that things would be different in 2023, the prices ultimately remained under the influence of the bear market and crypto winter. However, investors remain convinced that it’s only a matter of time before the Bitcoin price returns to its previous levels. Although achieving that might take some time, it will undoubtedly get there.
And although this goal still seemed far-fetched not long ago, based on market shifts and movements, investors seem to have sufficient reason for optimism. Despite the Federal Reserve dashing hopes for March rate cuts, Bitcoin news isn’t all doom and gloom.
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Price elevation
After several days of lowering price movements and a general tendency towards lower values over the past months, Bitcoin began steadily returning to its previous levels starting on June 17th. Later, the price approached $27,000, leading many traders to claim that the $30k breakthrough is not far away.
The cryptocurrency market is very sensitive to all internal and external changes, and this price shift was naturally no exception. The most noteworthy result was the nearly $100 million worth of liquidations. Short positions represented approximately 80% of the total amount. Before this change, Bitcoin had dropped to its lowest level over three consecutive months, dipping below $25,000.
Now, it seems like bullish traders finally have some cause for celebration, but price improvements are a good thing for the entire market. Most altcoins have followed suit as well, much like they usually do. Most of them have jumped by about 9%.
Whale assets
Whale investors are well-known for their ability to move massive amounts of capital during a single transaction. Their transactions are typically so substantial that they have a lasting effect on the overall market. As the market has continued to recover from its slump, researchers noted that whales took the opportunity to increase their holdings. This is because many expect prices to grow shortly, so now’s the best time to add to their holdings to sell higher later.
Whales who are crypto holders have, on average, between 1,000 and 10,000 BTC in their digital wallets. According to research, this investor subgroup has collectively amassed 131,600 BTC over the past eleven weeks, the rough equivalent of close to $4 billion. A large part of it is said to have occurred during the second week of June, when over 60,000 coins were added, amounting to nearly $2 billion.
According to researchers, Bitcoin has proved to be an incredibly resilient asset, and the current growth shows precisely why it has earned the moniker “digital gold”. Despite the constant market shifts over the past few months, it has remained one of the most popular assets in the world, and investors are still willing to put a lot of capital towards the crypto to add it to their portfolios.
Rally
But the fact the price is steadily approaching the $28k milestone has also caused the emergence of a short squeeze, the largest of its type of the month. The current price, which surged to $28,000 on June 20th, liquidated nearly $34 million short positions. After trading flat for most of the day, a little below $27,000, it climbed to $28,150 in just a few hours. While the climb didn’t last long, and the price dropped again, it maintained a 5.2% climb over the past twenty-four hours. This means that Bitcoin has, once again, outperformed virtually all other digital assets.
The investors who were positioned for a price drop recorded significant losses as a result, in the most substantial amount of short liquidations since May 28th. The main reason for this surge is the beginning of more positive news within the market. Over the past months, the most important thing for the market has been the steady increase of regulatory pressures and the troubles of several noteworthy exchanges. However, organizations and financial institutions have recently announced they’re moving into crypto territory, taking up digital finance initiatives.
Golden cross
The recent market movements have led many to believe that the market will shortly enter a bull run. While it’ll still be a while until its full effects become realized, analysts predict that the changes the market is seeing at the moment are a clear indicator of the formation of a bull run, still in its early stages. It is why many investors have begun rushing to capitalize on this trend.
Some believe the current environment might cause considerable changes within the larger crypto environment by enabling the creation of the first moving average golden cross, something that hasn’t happened before within the Bitcoin ecosystem. This occurs when a short-term moving average that was previously positioned below a long-term one manages to surpass it. The golden cross is among the most evident signs of a bullish trading signal.
The possibility of this unprecedented event led many to speculate that a bullish trend is nearby. It might also trigger the emergence of a large green candlestick, another bullish indicator that stands for strong buying pressure. If these predictions are correct, then Bitcoin is on the brink of entering a bullish trend unlike any before it. It starkly contrasts with the 2022 fall, one of the most damaging events in Bitcoin’s history.
Sustained change
Although the possibility of a bull run is incredibly attractive for investors, it remains to be seen whether the market will sustain it. Many believe that whether or not the momentum will hold is still uncertain. Daily breakout confirmation for Bitcoin remains challenging to estimate due to the lower high diagonal resistance. So far, several retests have failed to make the daily timeframe.
And while the breakout is, without a doubt, a positive thing, there’s still a considerable amount of resistance that Bitcoin needs to overcome to fully confirm the endurance of the changes. Better confirmation could be derived from the weekly timeframe, as it could display a more reliable way to measure BTC’s breakout. If the figures are beyond the downtrend, it would be a clear sign the bullish trend will go on.
While Bitcoin went through some difficult times since the beginning of 2023, things are finally on the mend as the crypto continues to regain its former strength.