A new wave of volatility has boosted the cryptocurrency market, with Bitcoin rising by more than $3,000 in a four-hour period on July 19.
Data from Cointelegraph Markets Pro Trading View A nightmare for short traders unfolded early on the weekend of July 19th when BTC/USD suddenly rose from $63,303 to $66,506.
At the time of writing, profits continue to grow after the BTC/USD pair hit an intraday high of $66,773 on Bitstamp.
“Bitcoin’s new short-term high means the recent sequence of higher highs and lower lows (an upward trend) is sustained,” independent investor Caleb Franzen said. react Bitcoin (BTC) has seen a sharp rise over the past few hours.
“This has been a constructive price move with a major breakout above structural and dynamic levels. Bulls are regaining increasingly firm control over the price.”
The rally has been attracting attention among day traders this week after the stock rallied to just below $65,000 in the wake of seller fatigue and the assassination attempt on former U.S. President Donald Trump.
Those who were betting on a continuation of the correction suffered huge losses on July 19th, with today’s rally seeing $40.83 million worth of short positions liquidated within four hours, for a total of $131.65 million wiped out in 24 hours.
CoinGlass’ Bitcoin liquidation heatmap shows that at the time of writing, BTC continues to drive overhead sell order liquidity, with $83.38 million in sell orders between $66,880 and $67,000 at risk of being liquidated in the near term.
Related: Bitcoin Bulls Charge Towards $66,000 as BTC Price Aims for 1-Month High
Bitcoin retail demand hits three-year low
MN Capital founder Michaël van de Poppe noted that retail demand for Bitcoin is at a three-year low, which he said reflects current market sentiment.
Continued inflows into Bitcoin investment products, including spot Bitcoin exchange-traded funds, suggest that demand for BTC is primarily coming from institutional investors.
Van de Poppe share CryptoQuant charts show that retail demand for bitcoin has declined since the cryptocurrency’s price hit an all-time high in March, and he said now is the time for this metric to “turn around” for bitcoin.
Market analysts believe that Bitcoin bull runs are typically driven by retail investors who have yet to return to the market.
“Real bull markets usually start with heavy buying by retail investors.” Declared Posted on July 17th by Woominkyu, author of CryptoQuant.
“And we haven’t seen this level of volume from retail investors yet.”
The long-term outlook remains very positive, with analysts predicting Bitcoin price to surpass $200,000 if BTC enters a parabolic uptrend.
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
