Bitcoin The move above $78,000 boosted the broader cryptocurrency market. The move comes as risk sentiment improved after U.S. President Donald Trump extended a ceasefire with Iran. Stock index futures also rose.
The cryptocurrency’s gains capped weeks of trading between $65,000 and $75,000 in March and early April, finally giving momentum traders the green signal they’d been waiting for.
Momentum traders buy when they see evidence that an uptrend is underway. Bitcoin’s breakout is exactly what happened, and more buyers are likely to flood in, adding to the momentum. As the First Law of Motion states: An object in motion will stay in motion until acted upon by an external force, although Sir Isaac Newton probably wasn’t thinking of financial markets at the time.
Marex analysts said: “The market has been capped in the 65 to 75 range for months. A break out of this range is important because it changes behavior. Sellers who were happy with the bounce above 74 must now reassess. Momentum buyers waiting for confirmation finally have something to rely on.”
On-chain metrics also indicate this. For example, the number of coins held in wallets associated with centralized exchanges has dropped to a multi-year low of 2.67 million BTC, according to data source CryptoQuant. This suggests continued accumulation by investors, which could eventually lead to a supply shock.
Delta Exchange said on
Still, QCP Capital urged caution, noting that Bitcoin put options on Deribit continue to be relatively abundant. Put options are used to hedge the risk of a potential price decline in the underlying asset. It added that cryptocurrency trends currently appear to be correlated with the outlook for oil prices and interest rates.
“The path forward remains dependent on oil and policy. Risks will be supported by lower crude prices or clearer signals from the Fed. In the absence of this, the market is likely to remain in a holding pattern, pricing in uncertainty rather than resolution,” the Singapore-headquartered company said in a market update.
In traditional markets, WTI crude oil futures are trading around $90, rebounding from Friday’s low of $78.
In the broader market, DeFi security risks remain a concern as hackers proliferate. Earlier today, the Sui-based Volo protocol was depleted of more than $3 million, just days after the KelpDAO incident caused collateral damage to the entire industry. Stay alert!
Read more: For analysis of today’s altcoin and derivatives activity, see Today’s Cryptocurrency Market. For a complete list of this week’s events, see CoinDesk’s “Crypto Week Ahead.”
what is trend
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today’s signal
This chart shows Bitcoin’s daily price action in the form of candlesticks, with lines representing the 100-day and 200-day price averages.
The price of BTC has established a foothold above the 100-day moving average represented by the white line. This is crucial as the 100-day EMA capped the January rally before sellers re-established control, causing the price to drop further towards nearly $60,000.
Now that the price has broken out, which typically indicates bullish momentum is building, focus turns to the 200-day EMA, currently at $85,900.