The crypto market saw an influx of trading volume in the US hours as Bitcoin (BTC) price breaks above a descending trendline. Is the crypto market recovery confirmed or is it a false breakout?
Bitcoin price recorded a more than 2% jump in an hour as traders poured money back into Bitcoin after chart patterns confirmed a breakout above the trendline. BTC price rebounded from $60,630 to $62,585 in a few hours on Thursday after a 3-day descending trendline was broken in a lower timeframe.
The Bollinger bands indicator shows an increase in trading volume as bands widen. BTC price also crosses above 20-SMA, confirming a strong rebound in prices.
Within the lower time frame, Ichimoku Cloud indicates the trend has reversed for bullish momentum. In addition, the base support is broken to confirm a recovery. Traders need to look for confirmation in higher timeframe for a massive rally in BTC price.
Bitcoin price has moved above the cloud and the cloud is also green, indicating bullish BTC price action in the coming days. Bitcoin needs to break above $66K and $70K for a rally to a new all-time high. Moreover, Bitcoin price breakout has triggered a broader market recovery as ETH, SOL, XRP, TON, DOGE, ADA, SHIB and other altcoins also climbed higher within hours.
This could be the final drop in BTC price as whales accumulated nearly $950 million in BTC a day ago. Whales typically to buy the bottom and starts a rally in a crypto.
CoinGape reported that wallets with 1k-10k BTC have accumulated over 15,000 BTC worth almost $941 million, indicating confidence in BTC whales despite price drop to $62,000. Whale accumulation is seen as a major factor in maintaining a bullish outlook for a crypto or whole crypto market.
Meanwhile, the US dollar index (DXY) has dropped today to 105.25 after climbing higher for three consecutive days. Moreover, the US 10-year Treasury yield (US10Y) also fell today. As Bitcoin moves opposite to DXY and Treasury yields, the decline helped bring upside to Bitcoin. Traders await further comments from Fed officials for guidance on market direction and economic outlook.
CoinGlass data shows over 61k traders were liquidated in the last 24 hours. The largest single liquidation order happened on crypto exchange Binance as someone traded BTCUSDT valued at $965.08K. This indicates traders remain cautious amid massive trading volume drop.
More than $142 million were liquidated across the crypto market in the last 24 hours, with an increase in short positions liquidation in the last 4 hours.
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