The Bitcoin price saw a significant surge of 2% in the last 24 hours, reaching an intraday high of $27,320. Currently, it is hovering near the $27,000 mark. Analysts have provided insights into this upward trajectory.
Skew’s Analysis
According to crypto specialist Skew, short liquidations and strong bids in the perpetual markets were the driving factors behind the momentum. However, once the price reached $27,200, selling in the spot market began, indicating a potential peak for Bitcoin.
Santiment’s Findings
On-chain analytics firm Santiment confirmed that open long and short Bitcoin positions increased as the price climbed. This rise in positions was accompanied by a surge in open interest in the futures market. Additionally, both Bitcoin and Tether sharks and whales have been accumulating their holdings, which is considered bullish.
However, Santiment also warned of a possible short-term correction due to profit-taking by traders after reaching $27,000. They suggested that when the 7-day MVRV (Market Value to Realized Value) drops below 0, it may be an ideal time for another upward movement.
Other Analysts’ Observations
DaanCrypto noted that there was a sustained spot bid during the price increase, which is seen as a healthy sign. Exitpump observed a chasing bid on the Binance spot order book and speculated that the price could continue to rise.
What’s Next for BTC Price?
The Bitcoin price is facing a crucial monthly close tomorrow. Rekt Capital highlighted the importance of this upcoming candle close. Bitcoin needs to close above $27,091 to avoid confirming a breakdown. Otherwise, a fall towards $23,000 could be likely.
On the 1-day chart, Bitcoin is showing strong bullish momentum. It has broken the black trend line and needs to defend the re-test. If successful, a monthly close above $27,100 is probable, potentially leading to a rally similar to June.
Hot Take: Bitcoin Price Surges 2% in 24 Hours
The Bitcoin price experienced a significant surge of 2% in the past day, reaching an intraday high of $27,320. Analysts have pointed to factors such as short liquidations and strong bids in the perpetual markets as drivers behind this upward momentum. On-chain analytics firm Santiment also noted increased open long and short positions, as well as accumulation by Bitcoin and Tether sharks and whales. However, caution was advised for a possible short-term correction. The Bitcoin price is now facing a crucial monthly close, with a close above $27,091 needed to avoid confirming a breakdown. Overall, the outlook remains positive but watch out for potential corrections.
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