Key Points
- Bitcoin’s price has reached and surpassed the $65,000 milestone, setting new records against the euro and pound.
- Changes in Bitcoin’s trading patterns indicate a maturing market, with institutional investors playing a significant role.
Bitcoin has once again drawn attention as its price has not only reached but also exceeded the $65,000 mark. This has led to the setting of new records against the euro and pound, and it’s approaching its all-time high in US dollar terms.
Market Activity and Trading Volume Analysis
There has been a noticeable shift in Bitcoin’s trading patterns, with a decline in weekend trading volumes. As of the beginning of 2024, only 13% of Bitcoin transactions occurred on Saturdays and Sundays, a reduction from 17% the previous year and a drop from 24% in 2018. This trend indicates a maturation of the Bitcoin market, with institutional investors taking a more significant role and sticking to conventional trading hours.
The recent surge in price has triggered a spike in liquidations of leveraged Bitcoin positions, particularly short positions. According to data from CoinGlass, over $80 million in Bitcoin positions were liquidated, with most being shorted. Furthermore, $160 million worth of short positions were liquidated in the last 24 hours, while the liquidation across centralized exchanges is excluded at $251 million.
Impact of Global Economic Factors
The strength of the US dollar against major currencies has been a crucial factor in Bitcoin’s performance. The Dollar Index, which tracks the US currency against six significant counterparts, showed an upward trend, gaining 2.7% throughout January and February 2023. This development has implications for Bitcoin’s value, as the digital currency assets have new benchmarks in euros and pounds.
A recent market analysis by Grayscale indicates that US inflation has been consistently declining since the start of the year, leading to an adjustment in market expectations towards anticipating higher inflation rates. The analysts noted that the prevailing elevated US interest rates tend to bolster the dollar’s value, which might negatively impact Bitcoin.
Bitcoin (BTC) Price Analysis
Bitcoin has surged by 54% since the start of 2024. At the time of writing, the marked price of Bitcoin was $65,108.84. The RSI (Relative Strength Index) at the bottom of the chart is an oscillator that measures the speed and change of price movements. The RSI value is around 76.94, which typically indicates overbought conditions and could suggest a potential retracement or price pullback might be imminent, as values above 70 are considered overbought.
The price is trading above the Ichimoku Cloud, suggesting a bullish trend. The green portion of the cloud, known as the Kumo, can act as a support area for prices in the future. The blue line is likely the Kijun-Sen, which also provides support and indicates the trend’s momentum.
The recent price action shows a strong uptrend, with Bitcoin’s price rising steadily and staying above the Ichimoku Cloud. However, traders would need to watch if the RSI continues to remain in the overbought region, as it could lead to a potential reversal or consolidation in the near term.
