As the cryptocurrency market sees renewed optimism, Bitcoin is continuing its upward trajectory, with current trading activity pointing towards the $61,000 mark. Bitcoin (BTC) experienced a slight increase of 0.19% on Sunday, August 11th, closing above $61k, following a decrease of 1.34% on the previous day. The broader crypto market also saw modest growth, with the total market capitalization rising by 0.33% to reach $2.088 trillion. Bitcoin moved within tight ranges for the second consecutive session earlier on Saturday due to mixed investor sentiment regarding supply-demand dynamics.
Bitcoin has shown a notable increase in intraday trading as observed from the daily chart. Starting from a previous close at $60,952, Bitcoin experienced sharp fluctuations but maintained an upward trend, highlighting a bullish sentiment among investors. The highest peaks approached the $61,300 level, reflecting strong buying interest. In the daily trading chart, Bitcoin shows a slight positive trend, closing with a modest gain of $176 to settle at $61,128. This subtle yet consistent growth suggests a steady demand at current price levels.
Bitcoin's recent trading activity has shown signs of cautious optimism among investors. The cryptocurrency closed at $61,254 with a modest increase of 0.50%, suggesting a potential stabilization after previous volatility. The daily chart exhibits a gradual increase, reflecting a slow but steady recovery from the earlier lows. This positive change is underscored by a growing trading volume, indicating that investors are gradually gaining confidence in the market's direction.
The Relative Strength Index (RSI) is currently at 48.53, which is near the midpoint of 50. This level is crucial as it indicates a balance between buying and selling pressures. Typically, an RSI below 30 suggests an oversold condition inviting buying opportunities, while an RSI above 70 indicates overbought conditions prompting potential selling. Currently, Bitcoin's RSI suggests that the market is neither overbought nor oversold, providing a neutral signal to traders.
The Moving Average Convergence Divergence (MACD) is another critical indicator to consider. It currently shows a narrowing of the bars on the histogram, indicating a reduction in bearish momentum and a possible shift toward a bullish crossover. If the MACD line crosses above the signal line, it could be a strong buy signal, suggesting that the upward momentum might continue in the near term.
Additionally, the Bollinger Bands on the daily chart show that Bitcoin is trading near the middle band. This position typically indicates that the price is in a relatively stable state, with no significant price breakouts expected immediately. However, a break above the upper Bollinger Band could signify a move towards higher resistance levels, potentially around the $63,000 mark.
The next major resistance is around the $61,300 mark, and a consistent breakthrough above this level could pave the way for further gains. On the downside, support is found near $60,000, which should serve as a safety net for any short-term pullbacks.
An announcement by Commodity Futures Trading Commission (CFTC) on earlier last week on Friday sent huge shockwaves across financial markets leading local courts’ order to FTX as well as Alameda to pay a staggering amount of $12.7 billion to their creditors thereby restructuring these companies financially. The expectation that such creditors could invest this new capital into cryptocurrencies contributed to yesterday’s gains seen earlier today too of 11th Sunday.
Nevertheless, fears of an imminent oversupply are still present and entities such as Arkham Intelligence have pointed out the fact that Mt. Gox and US government possess large bitcoin reserves which can lead to selling pressure. Mt. Gox had approximately 2.82 billion dollars in creditor repayments available at about 46,164 BTC by August 11th, while the US government had a higher stash of around 12.43 billion dollars worth of BTC with 203,239 BTC on hand.
The jobless claims and inflation data will be among key indicators from the American economic calendar for this week which is projected to have a significant impact on market sentiment. If inflation is less than estimated, aggressive increases in interest rates by the Federal Reserve might not happen thereby increasing investor appetite for Bitcoin and BTC-spot Exchange-Traded Funds (ETFs). Alternatively, increased jobless claims may raise concerns about an economic recession in America hence decreasing demand for Bitcoin and BTC-spot ETFs.
Further indication of how susceptible the cryptocurrency is to global financial dynamics could be seen on Monday August 5 when its value dropped drastically immediately after Yen carry trade unwound, hence underlining the potentiality for such a trade unwind in future affecting Bitcoin’s global price level adversely . The last week witnessed net outflows amounting to $167 million from U.S BTC-spot ETFs as investors became more conservative due to these uncertainties.