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⚡Bitcoin Surges Past $66K🍰

Croxroad

17 May 2024 — 4 min read

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The menu for today:

💰 Bitcoin Eyes $70K

Bitcoin surged 7.54% in the past 24 hours, pushing past $65,000 amidst positive U.S. inflation data, with traders now monitoring two key indicators for a potential rise to $70,000. Pseudonymous crypto trader Blockchain Mane emphasised the importance of the Gann Fans model, which analyses the geometric and cyclical movement of the crypto market to gauge whether Bitcoin can maintain its bullish momentum. According to Blockchain Mane, "Gann Fans are interesting, almost like a time and price momentum indicator," helping to visualise market cycles and price action. They noted that the market is currently at a pivotal point in the cycle and that an upward pivot could lead to a markup phase until the end of May. Conversely, a failure to break upward could result in a sideways or downtrend continuation.

The pattern caught Blockchain Mane's attention on the same day core inflation fell to 3.6%, the lowest level since 2021, potentially supporting the case for interest rate cuts. Blockchain Mane is now looking for Bitcoin to flip its previous resistance level of $63,000 to a new support level, considering this a bullish indicator. They expressed a preference for sideways price action to allow more narratives to build up, cautioning that a strong pump and subsequent rejection could negatively impact altcoins, as Bitcoin's dominance rises. Indeed, Bitcoin’s market cap dominance has increased by 2.23% to 55.99% over the past seven days, according to TradingView data.

Additionally, pseudonymous crypto trader Mikybull Crypto pointed to an inverse head-and-shoulders pattern, a bullish indicator suggesting the downtrend is easing and buyers are gaining market control. This pattern, which forms a reversal setup, indicates that Bitcoin is "due for a bounce." Should this pattern continue, Bitcoin's price could reach its next key level of $70,000, potentially breaking its current all-time high of $74,580. This projection represents nearly a 12% increase from its current price of $66,085, according to CoinMarketCap data. The market is closely watching these indicators as Bitcoin continues its dynamic price movements amidst evolving economic conditions.

🪫 Short Traders Burned

On Wednesday, Bitcoin demonstrated robust growth, rising more than $4,200 from its daily low. This 7.1% increase against the U.S. dollar propelled Bitcoin past the $66,000 mark, peaking at $66,461 per coin on Bitstamp. This surge elevated the entire cryptocurrency market by 6.2%, resulting in the liquidation of 51,567 traders on various crypto derivatives exchanges throughout the day. Bitcoin's initial rise followed the U.S. Labor Department’s Bureau of Labor Statistics' release of the consumer price index (CPI) report, which provided a favourable backdrop for the cryptocurrency’s bullish movement.

At 3:45 p.m. Eastern Time (ET) on Wednesday, Bitcoin's price hovered at $66,300 per unit, with global trading volume reaching $34 billion in the past 24 hours. From the day's lowest price, Bitcoin's value increased by more than $4,200 during the trading sessions, marking a 5.2% rise over the past seven days against the dollar. Bitcoin's primary trading pairs on May 15 included USDT, FDUSD, USD, USDC, and KRW, with the Korean won accounting for 2.36% of Bitcoin’s global trades. While the global weighted average price of Bitcoin stood at $66,300, it traded at $67,632 on the South Korean exchange Upbit at the same time.

The significant price rise across the crypto market led to notable trader liquidations, with derivatives positions amounting to $143.43 million being liquidated over the last 24 hours, including $98.11 million in crypto short positions. Specifically, $45.94 million of Bitcoin shorts and $17.88 million of Ethereum (ETH) shorts were wiped out. Additionally, $6.27 million in PEPE shorts were liquidated throughout the day. This wave of liquidations, driven by the favourable CPI report, underscores the high-stakes nature of leveraged crypto trading, where significant price movements can rapidly result in substantial financial gains or devastating losses. The swift clearance of $127.98 million in derivatives highlights the risks and rewards inherent in the volatile crypto market.

⛓️ On-Chain

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