Bitcoin recently surpassed $78,000, providing a boost to the overall cryptocurrency market. This increase follows an improvement in risk sentiment after U.S. President Donald Trump extended the ceasefire with Iran, which also saw stock index futures rising.
This rally in Bitcoin has finally given momentum traders the signal they’ve been waiting for, especially after being stuck in a volatile range between $65,000 and $75,000 from March into early April.
Momentum traders typically buy in when they see clear signs of an upward trend, and that’s exactly what’s happening now with Bitcoin’s breakout. This could potentially attract even more buyers and generate additional positive momentum. Although, well, Sir Isaac Newton might not have been thinking about financial markets when he discussed motion.
“The market was stuck in a tight range between 65 and 75. Breaking out of that is significant, as it changes behavior. Sellers who felt secure with the rally above 74 will need to reconsider their stance. Meanwhile, momentum buyers have finally received the confirmation they needed,” said analysts from Marex.
On-chain indicators support this outlook too. For instance, the number of Bitcoin held in wallets linked to centralized exchanges has fallen to 2.67 million BTC, the lowest in years, as reported by CryptoQuant. This suggests that investors are accumulating assets, which could lead to a supply shock.
“As Bitcoin supply on exchanges continues to decrease, fewer coins are available for buying, while more BTC is being held by long-term investors. This tightening of liquidity makes Bitcoin increasingly scarce, and a lower supply may contribute to higher price volatility,” noted Delta Exchange on X.
Still, QCP Capital warns that there’s still a lot of Bitcoin input options available in Deribit. They explained that puts are often used to hedge against a potential price drop. Trends in cryptocurrencies seem currently to be correlating with oil prices and the outlook for interest rates.
“The future direction is closely tied to oil and policy decisions. A drop in oil prices along with clearer signals from the Federal Reserve could ease risks. Without that, markets may remain stagnant, priced in uncertainty,” the company from Singapore said in their market update.
In traditional markets, WTI crude oil futures are hovering around $90, bouncing back from a recent low of $78.
Meanwhile, the DeFi landscape is facing significant security risks with ongoing hacking incidents. Earlier today, over $3 million was stolen from the Sui-based Volo protocol, just days after the KelpDAO event that caused wider collateral damage across the sector. It’s a good reminder to remain vigilant!
what is trending
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today’s signal
This chart illustrates Bitcoin’s daily price fluctuations in candlestick format, highlighting the 100-day and 200-day average prices.
Currently, BTC price has established a solid position above its 100-day average, indicated by the white line. This is significant because the rally in January was constrained by this average, leading to a drop to nearly $60,000 afterwards.
Now that the price has broken through, which usually suggests a consolidation of bullish momentum, attention is turning to the 200-day average, currently at $85,900.
