On the night of August 9, the leading cryptocurrency broke through the $60,000 mark. The asset climbed to $62,000 but quickly corrected.
At the time of writing, Bitcoin is trading around $60,800, having risen 6.5% in 24 hours. Its market capitalization stands at $1.2 trillion.
Following the digital gold, other top-10 assets also entered the “green zone.” Ethereum rose by 10.4%, while BNB added 4.5%.
According to Coinglass, the market saw $221 million in liquidations over the past day, with $157 million in short positions.
The rise of the primary cryptocurrency occurred a few days after “Black Monday,” when the coin fell below $49,000. Some traders now see a potential bullish signal.
#BTC and #CRYPTO Market Bottom is in ⁉️ pic.twitter.com/7PQ2uKLHQg
— Matthew Hyland (@MatthewHyland_) August 8, 2024
“Bitcoin is witnessing a huge green weekly candle with a massive wick. It is currently forming a massive ‘bullish hammer’ on the weekly chart. The asset has likely reached the bottom for this entire structure,” said crypto trader Matthew Hyland.
Caleb Franzen, founder of Cubic Analytics, noted that digital gold has reached the top of its 200-day moving average, which could act as resistance, halting the rally.
#Bitcoin is close to an underside retest of its 200-day moving average cloud, which is valid dynamic resistance.
I’m hopeful that we can break above this level, but I’m not ignorant to the fact that it can just as easily act as resistance.
Bullish if we break & close above it. pic.twitter.com/cnrnBPF9Jm
— Caleb Franzen (@CalebFranzen) August 8, 2024
“I am hopeful we can break above this level, but I am not ignorant of the fact that it can just as easily act as resistance. We will be optimistic if we break and close above it,” he added.
David Zimmerman, an analyst at K33 Research, noted that cryptocurrencies rarely recover in a straight line after events like the Monday crash.
“V-shaped recoveries are not the norm, and there is no need to rush into new positions. Prices within these wicks are usually revisited, and the focus is on finding positions in coins showing relative strength at this time. Even assuming the bottom is in, we are likely in for some turbulence,” he added.
Peter Schiff, President of Euro Pacific Capital, also noted the rise in all financial markets. In his view, Bitcoin began its rally amid comments from the sons of former U.S. President Donald Trump about cryptocurrencies.
Financial assets that declined recently all rose today, with #Bitcoin joining the rally with an even bigger move up. Bitcoin may have received an added boost from a vague commitment by the #Trump sons that a major pro-#crypto announcement is imminent. Sell Bitcoin into the rally.
— Peter Schiff (@PeterSchiff) August 8, 2024
“Sell Bitcoin into the rally,” Schiff emphasized.
Earlier, QCP Capital recorded significant purchases of December call options.
Analysts at JPMorgan have highlighted the key role of institutional investors in Bitcoin’s resilience.