TLDR
- Bitcoin price has rebounded, approaching $70,000 after breaking the $65,000 level.
- Traders are watching for a potential move to $71,500 based on historical patterns.
- Open interest in Bitcoin futures has increased 13% in the past five days.
- Donald Trump’s rising chances of returning as president and his crypto-friendly stance are seen as positive factors for Bitcoin.
- Reduced selling pressure from key wallets, including those linked to Mt. Gox and the German state of Saxony, has contributed to the bullish sentiment.
Bitcoin, the world’s largest cryptocurrency, is showing signs of a strong recovery as it approaches the $70,000 mark. This resurgence comes after a period of volatility and is driven by a combination of market trends and political developments.
As of Wednesday, July 17, 2024, Bitcoin was trading at $65,846, according to CoinMarketCap data. This represents a significant rebound from its recent low of $53,500 in early July.
Traders and analysts are now eyeing the $71,500 level as the next potential target, based on historical price patterns.
The cryptocurrency market has been closely watching several key factors that could influence Bitcoin’s price. One of these is the upcoming U.S. presidential election, where former President Donald Trump is gaining momentum.
Trump’s crypto-friendly stance and his choice of running mate, Ohio senator JD Vance, who is known to hold Bitcoin, have been viewed positively by the crypto community.
Lucy Hu, a senior analyst at Metalpha, commented on the situation:
“The rebound in Bitcoin price shows the market has a more optimistic outlook in the near-term macro environment. The market was encouraged by Trump’s vice president pick, which indicates a more crypto-friendly administration and policies.”
Adding to the bullish sentiment is the reduced selling pressure from significant Bitcoin holders. Wallets linked to the German state of Saxony have reportedly emptied their entire Bitcoin holdings.
The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action
Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/yxOhRsmVU9 pic.twitter.com/TZMP37ufjx
— Rekt Capital (@rektcapital) July 16, 2024
Additionally, the ongoing repayments from the defunct Mt. Gox exchange, which initially caused some market jitters, seem to have been absorbed by the market without major disruptions.
These developments have reignited interest among futures traders. Open Interest, which represents the total number of outstanding Bitcoin options contracts, has increased by 13% over the past five days.
This surge indicates growing confidence among traders in Bitcoin’s near-term price movements.
However, it’s worth noting that a significant amount of short positions could face liquidation if Bitcoin reaches $71,500.
Data from CoinGlass shows that approximately $1.47 billion in short positions would be wiped out at this price level, suggesting that many traders are betting against such a rapid rise.
The current market dynamics are reminiscent of patterns seen in August 2023, where Bitcoin experienced a 17.5% jump to $47,000 in just two months after falling below its 200-day moving average.
Some traders believe a similar pattern could play out now, potentially pushing Bitcoin beyond the $70,000 mark.
