Bitcoin steadily increased as FOMO frantically on Binance & Coinbase continued

Bitcoin steadily increased as FOMO frantically on Binance & Coinbase continued

The past 24 hours have been a booming time for the Bitcoin market. Since passing $ 7,800 on Wednesday morning, the price has been in an almost unstoppable uptrend, in turn surpassing the resistance levels of $ 7,000, $ 8,000 and most recently $ 9,000. most important.

This strong uptrend stems from an increase in buying volume on retail exchanges like Coinbase, which temporarily collapsed on Wednesday due to buying activity. Binance too, with the increase in volume, the exchange has trading activities worth $ 11 billion over 24 hours.

BTC just dropped slightly to $ 8,900 at the time of writing - 13% higher in 24 hours.

 

This is the highest level the cryptocurrency has traded since the first week of March, right before the surrender event that brought Bitcoin back to $ 3,700.

Source: TradingView.com

Although the short was liquidated in the latest leg from $ 8,800 to $ 9,364, Skew's data shows that the short worth more than $ 90 million on BitMEX has been liquidated in the past 24 hours.

It's a great trend that proves very few investors anticipate Bitcoin to rise so high and so quickly.

Factors driving the explosive move

It's hard to say exactly what the crypto community is thinking, but analysts say recent price action could be attributed to the underlying trend.

Roch Rosenblum, co-director of trading at GSR, commented to Bloomberg in the aforementioned article that the ongoing BTC rally was confirmed in the macroeconomic environment:

“The latest rally surpassed $ 8,000 thanks to positive macro sentiment as well as the upcoming halving. We are starting to feel a lot more certain, as many countries share plans to reopen the economy in May. ”

This optimism was echoed by BlockFi co-founder Zac Prince. He said that "the dynamics of the current market are driving interest in digital currencies." The motivations he cited were the Federal Reserve's commitment to printing money and the growth of stablecoins.

Bitcoin's uptrend reaches a point of maturity.

This latest uptrend seems to have been fueled by significant buying pressure from retail investors who have the power to catalyze and help BTC move from a low of $ 3,800 to a high above. $ 9,000 is set today.

There may be some underlying factors involved in the process, such as halving after just 2 weeks with the ongoing recovery across traditional markets. Both support Bitcoin bulls.

The ongoing recovery of cryptocurrencies may also prove to be more stable than what was seen in previous years, as data regarding investor returns show that they have actively 'bought'. dip 'during the past few weeks.

The blockchain analysis platform Glassnode talked about this phenomenon in a recent post, explaining that the profit of BTC in circulation has increased by 9% compared to the time before trading at this price.

“The Bitcoin market in general is currently in a more profitable state than before it collapsed - indicating that investors have bought dip. When BTC surpasses $ 8,300, 73% of circulating BTC is in a profitable state - 9% more than the previous time at this price. ”

On-chain figures show the growth of retail investors

While looking at data related to people who have been heavily involved in the cryptocurrency market recently, it's clear that retail investors play a prominent role in this movement.

According to data from blockchain monitoring platform Skew, OI on BitMEX has been narrowed recently, due to a series of short positions liquidation.

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OI XBT / USD on BitMEX | Source: Skew

This shows a lack of participation from active traders.

Combined with the strong growth of BTC wallets with a non-zero balance according to data from Glassnode clearly shows that retail traders are the main factor behind this rally.

bitcoin

Bitcoin: The address has a balance other than 0 | Source: Glassnode

Passive investors promote Bitcoin's medium-term movement, as it shows that the uptrend may be more sustainable than the trader margin.

What next for Bitcoin?

One trader commented that with Bitcoin surpassing the resistance of $ 7,800-8,000, which he calls the final foothold for the bear, the chances of price increase have increased significantly.

In contrast, Bloomberg warns of a possible correction when Bitcoin is trading between $ 8,000. The GTI Global Strength Index (a measure of asset trend tracking) for Bitcoin has recently surpassed 70.

Source: Bloomberg

The number "70" coincides with the time when the asset has become technically overbought. Bloomberg warned "it is difficult for the token to increase profits in the short term."