Why Is Bitcoin Price Up Today?
August 24 2023 - 2:30AM
NEWSBTC
The Bitcoin price experienced a resurgence yesterday, reaching a
high of $26,843, a 3.7% increase after its recent crash from
$29,000. The reasons behind this uptick are manifold. Why Is
Bitcoin Up? According to on-chain analytics firm Santiment,
significant Bitcoin holders, often referred to as whales and
sharks, have been actively adding to their holdings. As of now,
there are 156,660 wallets holding between 10 to 10,000 BTC, with a
collective accumulation of $308.6M since August 17th. Whale and
shark wallets have added 11,629 BTC in the past six days. Michaël
van de Poppe, a well-regarded crypto analyst, drew attention to the
strength shown by Silver & Gold, especially after the
disappointing PMI rates yesterday. He believes that as yields
appear to be topping out, Bitcoin might follow the trajectory of
these commodities. Related Reading: The Jackson Hole Effect?
Powell’s Speech Sparks Bitcoin Fears Amid Similar 2022 Price Action
Recent economic indicators from the US private sector provide
further context. The S&P Global Composite PMI for early August
showed a decline, falling to 50.4 from 52 in July. Both the
Manufacturing and Services PMI indices also registered drops from
49 to 47 and 52.4 to 51 respectively. Moreover, the Bitcoin futures
market certainly played a certain role in yesterday’s Bitcoin price
movement. Yesterday, $28.06 million in short positions were
liquidated on this market. After all, this is the third largest
amount in August so far, surpassed only by August 17 ($120 million)
and August 8 ($37 million). Market intelligence platform
Decentrader highlighted the prevailing market sentiment, noting
that despite Bitcoin’s price rise, there’s still a sense of
uncertainty and fear. This sentiment is further underscored by the
continuing negative dip in average funding rates. While this means
that sentiment is still bad, it opens up the possibility for more
short squeezes if traders are raging into shorts. The Dollar-Index
(DXY) and its inverse relationship with Bitcoin also played a part.
DXY was rejected just below 104 yesterday and dropped back to
103.5. The SPX showed a nice relief bounce with USD coming off
103.96. Related Reading: This Bitcoin Indicator Is On The Verge Of
A Bullish Breakout CryptoCon’s volume analysis offers a broader
perspective on Bitcoin’s price movement. Since November 2020, the
volume of Bitcoin transacted reveals why the price halted at its
current position. The volume past $28,900 acts as a significant
barrier. However, the current range of 24,000 to 29,000 for Bitcoin
is relatively uncharted, suggesting that Bitcoin is searching for
new support and preparing for a potential move to the next
resistance zone. What’s Next For BTC? The upcoming Jackson Hole
Economic Symposium tomorrow, Friday, where the Federal Reserve will
discuss its future strategies, is a pivotal event on the horizon.
Keith Alan of Material Indicators recalled the impact of last
year’s symposium on Bitcoin, emphasizing, “Remember when FED Chair
Powell spoke from Jackson Hole last year and his hawkish tone
triggered a 29% BTC dump?” While there are parallels in Bitcoin’s
price action leading up to this year’s event, it’s crucial to note
that market reactions can be unpredictable and hinge on various
factors. With the Bitcoin market poised for the events of
tomorrow, the prevailing mood is one of anticipation mixed with
caution. At press time, BTC traded $26,464. Featured image from
iStock, chart from TradingView.com
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Oct 2023 to Oct 2024