Bitcoin Up by 15%: Is the Bull Run Back?

Cryptonews John Brightwater September 14, 2024

Bitcoin Up by 15%: Is the Bull Run Back?

Summary
Bitcoin has surged 15% recently, passing $60,000 thanks to significant purchases by Microstrategy. This price movement raises questions about sustainability as the cryptocurrency faces resistance at $60,800 and market apprehensions linger despite current investor profits.

The cryptocurrency market has recently witnessed a remarkable surge with Bitcoin rising by 15%, marking its return past the $60,000 threshold on September 14. This event follows a previous rejection at the $65,500 mark on August 26. Currently, Bitcoin is navigating a challenging price range between $60,000 and $60,800, which it had previously encountered resistance with on August 29. Investors exhibit a mixture of enthusiasm and concern regarding this price movement, warranting an investigation into the factors driving this trend and the potential future implications. A significant contributing factor to this bullish momentum can be attributed to Microstrategy’s strategic acquisition of an additional 18,300 Bitcoin on September 13. This investment has augmented their total holdings to 244,800 BTC, establishing Microstrategy as the largest publicly traded Bitcoin holder. Amid a general atmosphere of trepidation in the cryptocurrency market—particularly as September is historically recognized as a bearish month for BTC—this acquisition from Microstrategy appears to have acted as a catalyst, instigating market upward movement. With the average acquisition price per Bitcoin for the company now at $38,585, their substantial purchase has somewhat alleviated market fears and stimulated upward price action. Analyzing chart movements reveals that Bitcoin’s price experienced a significant shift from approximately $52,000 to $60,384 within the span of a week, an increase exceeding 15%. Despite the common challenges associated with the month of September, Bitcoin has persisted in testing and overcoming key resistance levels, including the critical 200-day moving average (MA). The recent buy from Microstrategy propelled Bitcoin past this moving average and through the previously challenging $60,000 price point. However, the price continues to grapple with the $60,800 threshold, a level that has historically impeded rises, leading to concerns over potential future rejections from this point. Investor sentiment remains cautious, as indicated by data sourced from “IntoTheBlock”, which highlights that 84% of current investors are realizing profits at this price point, whereas 13% are at a loss, leaving a mere 3% of investors who have entered at current levels. Approximately 75,305 Bitcoin transactions were executed within the price ceiling of $59,130 to $61,281.88. Furthermore, about 1.65 million Bitcoin addresses stand unaffected, as purchases made at current prices leave them neither in profit nor loss. Conversely, there exists a notable resistance point between prices of $61,281 and $82,500, where 6.88 million addresses collectively hold about 3.1 million BTC. In regards to trading activity within the past day, approximately 34,678 traders faced liquidation, amounting to $126.40 million worth of positions. This surge in Bitcoin’s price precipitated substantial losses for short-position traders, summing to $101.56 million. A shift in the open interest weighted funding rate has been observed as it dipped to -0.0061%, indicating a prevalent short squeeze that necessitated purchasing measures from short sellers to mitigate losses. Looking towards the future, although Bitcoin has successfully breached the $60,000 mark, the trajectory ahead appears fraught with challenges. Retail investors who acquired their assets above this level may opt to take profits as the price approaches the $60,800 resistance, potentially influencing Bitcoin prices downward. Currently, the market sentiment remains neutral, reflected by the Fear and Greed Index at 50 points. It remains to be seen whether Bitcoin will decisively overcome the $60,800 obstacle in its quest to confront subsequent resistances or revert to the $57,000 range.

The price fluctuations in the cryptocurrency market, especially Bitcoin, have a profound impact on investor behavior and market sentiment. Historically, Bitcoin’s performance during September has been labeled as bearish, giving rise to apprehension among investors as they contemplate the asset’s resilience and potential future performance. The role of significant institutional players, such as Microstrategy, in influencing market dynamics cannot be understated, particularly in times of price volatility. Their investment strategies often serve to both buoy market prices and instill confidence among retail investors. Understanding the interplay between market sentiment, trading behavior, and significant investments is crucial for analyzing Bitcoin’s potential for sustained upward movement or regression into bearish territory.

In summary, Bitcoin’s recent advancement past the $60,000 mark is underpinned by strategic institutional investments, notably from Microstrategy, which invigorated the market atmosphere. However, significant resistance around the $60,800 level poses challenges for continued bullish momentum. While investor sentiment appears mixed, with the majority currently in profit, potential profit-taking and a historically bearish September could influence future price action. Monitoring market developments in the coming days will be vital to ascertain whether Bitcoin can sustain its bullish trajectory or if it may retrace to lower price levels.

Original Source: coinpedia.org