May 23, 2024
Bitcoin Price Today is $62,706, Things About Bitcoin This Week
Bitcoin price today

Bitcoin Price Today is $62,706, Things About Bitcoin This Week

Monday, May 13, 2024: Bitcoin Price Today is $62,706, continues its cautious stance, with the beginning price of Bitcoin this week hovering around $62K. The cryptocurrency is carefully preserving the $60,000 support level amidst a sentiment oscillating between bullish and bearish.

BTC/USD 1-hour chart. Source: TradingView

BTC’s price action remains within a narrow trading range, prompting speculation about what could trigger a significant change in pace. Bitcoin this week, potential volatility in the crypto market is anticipated, as United States macroeconomic data merges with commentary from Jerome Powell, Chair of the Federal Reserve.

The $60,000 support level holds significance for Bitcoin bulls, with market dynamics hinting at the possibility of a deeper correction. Traders are closely monitoring bid liquidity below $50,000, eyeing it as a potential zone for a longer-term market bottom.

Analysis from TradingView indicates minimal volatility in the BTC/USD pair leading up to the week’s end. Significantly, the $60,000 level, which was regained on May 3, has remained firm. This threshold is considered crucial by some bullish investors.

Mark Cullen, a well-known analyst, pointed out a “bullish order block” near the $60,000 mark in a commentary on a chart shared on platform X. He highlighted Bitcoin’s ability to sustain its position above $60,000, noting a break in the downtrend.

BTC/USD charts. Source: Mark Cullen

Cullen remarked, “Bitcoin still maintaining its position above 60k and breaking the downtrend.” This observation underscores the importance of Bitcoin’s resilience and its ability to resist downward pressure, particularly around the $60,000 level.

“That blue OB is going to be the key in the short term, lose it & we revisit the lows & likely much lower. Hold and another leg to take liquidity above the highs at 64-67k is likely.”

Key Factors Influencing BTC Price Action

Analysts highlight the importance of macroeconomic data releases, particularly the Consumer Price Index (CPI) on May 14, in determining BTC’s trajectory. $60,000 represents not only a level of bids but also marks the convergence of key moving averages and other support trendlines indicative of a bull market.

“So far during this and previous bull cycles, it has offered good support. Let’s see how we do from here.”

Traders emphasize the resilience of BTC’s support, noting the presence of a “bull market support band” formed by two exponential moving averages. Recent data shows a new $65 million block of bids placed around $60,250 while asking liquidity above $62,000 awaits clearance, potentially signaling the next spot price battleground.

BTC/USD chart with the bull market support band. Source: Daan Crypto Trades

Market Sentiment and Indicators

According to on-chain data analysis, experienced Bitcoin holders are exhibiting behavior reminiscent of the 2021 bull market. Notably, long-term holders (LTHs) are increasing their exposure to BTC after distributing their holdings throughout 2024.

This observation comes from J. A. Maartunn, a contributor to the on-chain analytics platform CryptoQuant. Maartunn’s latest findings, shared on platform X, suggest that LTH entities are actively seeking to acquire more BTC, similar to trends observed in mid-2021.

Maartunn elaborates that these holders view the current lower price of Bitcoin as an opportunity to accumulate coins at a discounted rate. Their strategy involves reintroducing these accumulated coins to the market during phases of heightened hype. This analysis sheds light on the motivations behind LTHs’ actions and their potential impact on Bitcoin’s market dynamics.

“Interestingly, a trend line can be drawn between the data points from 2018, 2021, and 2024. There’s a cyclical trend occurring, as previously described, where long-term holders buy in bear markets and sell in bull markets. However, a broader and more enduring trend is also at play: despite this cyclical trend, an increasing share of bitcoin is steadily being held by long-term holders.”

Market participants are closely watching U.S. macroeconomic developments, particularly Powell’s remarks, which historically have influenced market sentiment. The Crypto Fear and Greed Index, a classic sentiment gauge, fluctuates between various states, indicating the potential for knee-jerk reactions.

Crypto Fear and Greed Index (screenshot). Source: Alternative.me

Despite the current neutral funding rates in derivatives markets, volatility persists elsewhere in the crypto sphere. On-chain activity for Bitcoin this week has dwindled, with transactions slowing down since reaching an all-time high, reflecting trader indecision and fear.

Image by Satheesh Sankaran from Pixabay

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