Bitcoin Bounces Back: $63,000 Mark Surpassed Amid Bullish Signals and Accumulation Activity
Summary:
Bitcoin (BTC) price surged, reclaiming the $63,000 mark on 18th April and indicating recovery in the crypto market. Market intelligence firm Santimet suggests that the visible downward turn in crowd sentiment might prove a market bottom. Although geo-political instabilities and potential Fed rate cuts have tarnished BTC price, the 'greed' level in the emotional indicators remains prevalent among crypto traders. BTC holders continue to accumulate despite the decrease in value, with reducing exchange deposits indicating a lack of selling intent. Notably, a sharp increase in Bitcoin futures and short liquidation timings coincides with BTC price boosts, hinting at positive future trends for the cryptocurrency.
On April 18, Bitcoin (BTC) started a resurgence, surpassing the $63,000 mark and steering a sweeping recovery of the cryptocurrency market. Information from TradingView and Cointelegraph Markets Pro reveals an aggressive rise in BTC's price on April 18, from an early-stage price of $60,618, escalating 5.5% to reach an intraday apex of $64,240, thereby recuperating from the losses of April 17. This sets market watchers to ponder if the pullback has yet concluded.
Shifting submissive crowd sentiment could indicate a market trough. According to Santimet, a market intelligence entity, the Bitcoin price drop has pushed a negative turn in crypto crowd sentiment. Santimet showcased a graph on its April 18 post, indicating a consistent trend in bearish views towards Bitcoin and other sizable tokens like Ether (ETH) and Solana (SOL). It went on to suggest this fuels the likelihood of crypto prices rising.
Social media references to "bull market" or "bull cycle" within the crypto domain have dwindled since Bitcoin reached its pinnacle of $73,835 on March 14. Simultaneously, occurrences of "bear market" or "bear cycle" have persistently ascended. Typically, pessimistic crowd sentiment has coincided with market troughs.
Any diminution in the expectations of 2024 Federal Reserve rate cuts, combined with intensifying geopolitical instabilities, have put pressure on BTC pricing, instigating a weekly drop of 10% at press time. Nevertheless, from data provided by sentiment tracking platform Alternative.me, it appears that levels of "fear and greed" surrounding Bitcoin maintain a foothold in the "greed" zone, marking 57, which is a drop from last week's 76 and last month's 79, both within the "extreme greed" zone. This suggests that Bitcoin traders retain their optimism, notwithstanding over a week of price alterations.
Simultaneously, Bitcoin holders have kept up activity in accumulation, as proven by the sharp drop in BTC of under $60,000. CryptoQuant data indicates a significant shift of over 27,700 BTC (roughly $1.72 billion) on April 15. This indicates that investors remain keen on building up Bitcoin holdings in pursuit of future value growth.
Reducing supplies of BTC to exchanges backs-up this accumulation ideology too. As indicated by further data from CryptoQuant, transactions from known exchange wallets started to reduce as of March 5, when BTC surpassed its highest-ever value of $69,000. This trend persevered on April 12, despite an over 8% price drop on the day. BTC deposits decreased from the 38,910 transactions on March 5 to 21,866 transactions on April 15.
This reduced interfacing of BTC with exchanges hints at decreased selling intent and is generally seen as a bullish signal.
Also worth noting is a sharp momentum in Bitcoin futures, which seems to have contributed to today's price spike. Short liquidation timings appear to coincide with the swift uptick in BTC's value. Data from Coinglass shows liquidations of $32.52 million in BTC short positions have happened over the past 24 hours, with total cryptocurrency market liquidations amounting to $174.9 million.
Traders experience short liquidations when the traded asset's price experiences a sudden rise. Those traders who were optimistic about the asset and initiated short positions face losses as the market momentum is against them.
This article is purely informative. It does not offer investment advice or recommendations. Investments and trading moves come with inherent risks and decisions should be made based on thorough personal research.
Published At
4/19/2024 12:10:22 AM
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