Bitcoin’s (BTC) Price Goes up 7.5% in 24 Hours: What Caused the Rise?

Bitcoin (BTC) ended the daily candle with a solid 7.5% increase, indicating a powerful bullish trend.

Now, let’s explore the reasons why the $60,000 price has been a significant threshold for investors and traders.

Analyzing the Price of Bitcoin: Examining Important Technical Indicators

The current price is moving within the daily Ichimoku Cloud, an important technical indicator that reflects market sentiment. If the price surpasses the upper limit of the cloud, it could indicate a possible extension of the ongoing upward movement.

On the other hand, the cloud’s bottom limit, approximately $62,000, and the 0.618 Fibonacci retracement level, around $60,135, serve as robust support levels.

According to the chart, the price has repeatedly tested the $60,000 level, indicating its significant role as a reliable support. Now, let’s delve into the factors contributing to this.

Daily Price Action for BTC/USDT. Source: TradingView

Price Comparison Based on Address Cohorts: New vs. Old Whales

• Recent Price Discovery of Whales: A new wave of investors, who possess more than 1,000 BTC and have held the coins for less than six months, have been actively amassing Bitcoin at the price point of approximately $60,000. This purchasing action is vital, establishing $60,000 as a significant level of support. The consistent increase in holdings at this price reflects a high level of trust among new large investors, which strengthens the stability of Bitcoin’s price. The average purchase price, or actual price, of these recent additions to their portfolio, suggests that each Bitcoin they acquired had an average cost of $60,000.
• The realized price of long-term whales, who have held more than 1,000 BTC for over six months, remains consistently stable. The stability observed here is indicative of their strong belief and reduced employee attrition, implying a deliberate and far-sighted investment strategy.

Holdings Controlled by New Bitcoin Whales

• Accumulation Trend: The chart illustrates a consistent rise in the quantity possessed by recently emerged large investors, highlighting their consistent growth throughout the previous month. This pattern coincides with substantial price hikes, indicating a connection between their purchasing behavior and the upward movement of prices.
• Market Confidence: New investors continue to amass significant holdings, even in the face of price adjustments. This emphasizes their optimistic perspective and strengthens $60,000 as a crucial level of support. This behavior suggests that new whales perceive existing levels as appealing opportunities to enter the market, which helps maintain stability and could potentially lead to upward movement.

The surge in Bitcoin’s value is significantly bolstered by the significant increase in supply controlled by recently emerged large investors—a group of prominent investors who have substantially boosted their acquisitions. This trend is apparent, as the actual price for these recently acquired whales serves as a significant level of support.

Bitcoin consistently hovers around the crucial $60,000 mark. Whenever Bitcoin reaches this price point, new investors with significant holdings enter the market to amass more, solidifying $60,000 as a strong level of support and bolstering Bitcoin’s ongoing ascent.

The Spectrum of Realized Prices for Bitcoin

The actual price range is an essential tool for navigating bullish markets and offering information on typical purchase costs among various groups of owners. The realized price for short-term holders, which reflects the average acquisition price for these investors, is serving as a support level, effectively identifying market lows during this bullish period.

The observed price range assists in tracking Bitcoin’s volatility throughout market cycles. At present, Bitcoin is trading higher than all realized prices across the spectrum, which is a positive signal suggesting a robust upward trend.

This placement emphasizes the trust in the market and the possibility of additional profits.

BTC Realized Price Spectrum. Source: CryptoQuant

Strategic Suggestions in Light of Bitcoin’s Impact

1. Positive Perspective: The perspective on Bitcoin continues to be positive. This evaluation is derived from the most recent changes in prices and the foundational levels of support established by the accumulation of new whales.
2. Bitcoin has a robust level of support at $60,000, which is highly significant in determining its future performance. This level of support is mainly attributed to new investors who have been consistently acquiring Bitcoin at this particular price, solidifying it as a crucial level.
3. Price Forecasts and Suggestions: If Bitcoin manages to surpass the daily Ichimoku Cloud, there is a possibility of prices soaring to the range of $78,000 to $80,000 in the near future. Nevertheless, this optimistic forecast relies on a number of variables:

• Ongoing increase in the number of new whales.
• Miners are holding onto their assets instead of selling them, as they are currently making a profit.
• The absence of any adverse macroeconomic or geopolitical events is a key factor in maintaining Bitcoin’s positive momentum.