Bitcoin Price Surges Above $64,200 as Traders Remain Bullish
Bitcoin price reached a new peak above $64,200 on March 4, driven by bullish traders who wanted to get in early before the resumption of ETF trading. Despite a 6% retracement from last week’s peak, data shows that speculative traders in the derivatives market continued to double down on their bullish bets. The question now is whether Bitcoin can finally surpass its previous all-time high of $70,000 after three years of stagnation.
BTC Traders Increase Leveraged Bets by 300%
On March 4, Bitcoin price surpassed the $64,000 mark for the first time in 840 days. However, buying pressure in the crypto market cooled after Bitcoin ETFs ceased trading on March 1, leading to a 6% retracement towards the $60,000 support level. Despite this, on-chain data reveals that Bitcoin speculative traders remain overwhelmingly bullish. Santiment’s aggregate funding rate data shows that Bitcoin bulls continue to pay record fees to keep their long contracts open, indicating their conviction that BTC will experience another major upswing.
- The current funding rate value of 0.06% on March 3 is a significant increase from last week’s opening value of 0.02%.
- Elevated positive funding rates suggest that leveraged BTC long position holders are paying unusually high fees to short traders.
- This signals their intention to defend their positions and hold out for a rebound rather than exit.
- The last time BTC traders raised funding rates above 0.06%, BTC price soared by 10% within a week.
Forecast: Bitcoin Price Potential This Week
If the current market dynamics persist, the 300% increase in funding rates suggests that Bitcoin price is likely to advance towards $70,000 rather than risk losing the $60,000 support level. Data from IntoTheBlock shows that about 97% of existing Bitcoin holders are currently in profitable positions, indicating a reluctance to sell. This reduced selling pressure puts BTC price in a favorable position to maintain a high support level above $60,000. Additionally, if Bitcoin ETFs spark another buying frenzy when trading resumes on March 4, highly leveraged bulls could seize the opportunity to push for a new all-time high.
- Bitcoin’s strong support level above $60,000 is reinforced by the majority of holders being in profitable positions.
- The resumption of Bitcoin ETF trading could further boost the price towards $70,000.
- However, bears may attempt to halt the rally as BTC approaches $65,000.
- A cluster of addresses that acquired BTC three years ago at an average price of $65,164 may trigger profit-taking and slow down the rally.
Hot Take: Bitcoin Bulls Eyeing New All-Time High
The recent surge in Bitcoin price has generated excitement among traders and investors. With BTC surpassing its previous peak and traders remaining bullish, there is optimism that Bitcoin can reach a new all-time high above $70,000. However, potential obstacles lie ahead as bears may attempt to disrupt the rally near the $65,000 mark. Profit-taking from long-term holders who acquired BTC at a higher price could also temporarily slow down the upward momentum. Nevertheless, the overall market sentiment remains positive and traders are eagerly watching for further developments in hopes of witnessing Bitcoin’s resurgence.
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