Following recent erratic trading, the price of Bitcoin has increased by more than 3% today, reaching the $63,000 threshold. Notably, the recent increase in the cost of Bitcoin has spurred discussions on the possible causes of the price increase in the cryptocurrency market following a period of tumultuous trading. Many analysts have released insightful commentary on the recent fluctuations in the price of Bitcoin and essential levels to keep an eye on.
Why Is the Price of Bitcoin Rising Right Now?
The price of Bitcoin and the cryptocurrency market have both experienced increased volatility in recent days. On the other hand, the flagship cryptocurrency has increased today, suggesting that investors are becoming more confident in the space. Thus, we will now examine the probable causes of the rally and some crucial indicators of those causes.
Growing Bitcoin Holdings Indicate Positive Attitude
A recent post community sock on the X platform has sparked the investment community’s confidence, which may have contributed to the recent surge in the price of Bitcoin. The analytics firm estimates that between the current price and the all-time high (ATH) of $72,500, about 5.1 million Bitcoin addresses—roughly 10% of all BTC holding addresses—have amassed Bitcoin.
In the meantime, this disclosure indicates a sizable inflow of fresh investors into the market, reflecting rising self-assurance and optimistic feelings regarding Bitcoin. Notably, the rise in Bitcoin accumulation demonstrates investors’ interest in the cryptocurrency’s prospects and value proposition.
Several specialists believe that this revelation could be the cause of the recent increase in the price of Bitcoin as demand exceeds supply. The market sentiment is positive, which has contributed to the recent upward trend in the cost of Bitcoin, with a significant part of addresses buying Bitcoin at current levels.
Analysts’ Remarks Encourage Optimism
Analysts have been sharing important details about the recent fluctuations in bitcoin’s price. Furthermore, some have also clarified the essential price milestones for the leading cryptocurrency.
Rekt Capital, a well-known cryptocurrency market expert, offered context for Bitcoin’s current price spike. Rekt Capital announced that the Post-Halving Bitcoin “Dan” er Zone” was” over, indicating that the cryptocurrency was on the upswing.
The analyst claims that Bitcoin’s rise from the Re-Accumulation Range Low support is a cause for celebration as it demonstrates a resurgence of investor confidence. Notably, this announcement is against increasing market optimism for cryptocurrencies as Bitcoin has recovered from its recent lows.
Furthermore, Rekt CapiCapital’s analysis indicates that a more optimistic attitude has emerged as a result of the halving-induced concerns about Bitcoin’s price trajectory.
However, another well-known analyst, Mags, has provided insightful commentary that may have contributed to the current BTC surge. Mags claims that technical analysis indicators, primarily the daily chart’s 100-day moving average (MA), are responsible for the current advance in Bitcoin.
Notably, Mags draws attention to a historical pattern that indicates that when Bitcoin reaches or marginally falls below the 100-day MA, it usually experiences a local bottom or bottom out. The last time Bitcoin challenged this MA, in January, the analyst claimed, was a pivotal moment that resulted in an astounding 90% price increase.
Based on this pattern, similar technical factors may be driving the recent rally in Bitcoin, with traders viewing the test of the 100-day MA as a bullish signal.
Key Levels To Watch
Prominent cryptocurrency analysts, such as Michael van de Poppe and Ali Martinez, have highlighted key BTC price points in the middle of volatile markets. Notably, Martinez highlights the significance of Bitcoin regaining $64,290 for a potential climb towards $76,610. However, he also warned of a BTC retest towards $51,970 if this barrier is noticed.
Michael van de Poppe, on the other hand, favors maintaining the existing support level and suggests that a breach of $60,000 would cause a further decline to $52,000–$55,000. Furthermore, he advised market players to be patient and accumulate in the face of uncertainty as the cryptocurrency market moves through various news-driven swings.
BTC Price Rallies Amid Soaring OI
Rising open interest coincides with the price of Bitcoin, indicating a bullish attitude towards the leading cryptocurrency in the market. According to CoinGlass statistics, the Bitcoin Futures Open Interest (OI) has climbed 3.74% in the last 24 hours to 479.88K BTC or $30.25 billion.
The CME and Binance exchanges have topped the list in the OI chart, soaring about 3.20% and 3.57%, respectively. Notably, the overall Bitcoin Futures OI increased by 3.95% in the last four hours, indicating a bullish mood in the market.
However, as of writing, the Bitcoin price was up 3.14% to $63,021,56, while its trading volume rose over 70% in the last 24 hours to $22.47 billion. The fact that the cryptocurrency hit a low of $60,769.84 in the past day suggests that the market is still volatile.
