In the past 24 hours, Bitcoin price saw a significant increase of 2%, reaching an intraday high of $27,320 yesterday. At the time of writing, the BTC price was hovering around $27,000.
Why did the Bitcoin price rise today?
Several analysts have provided insight into the recent upward trajectory. Well-known crypto specialist Skew explained on Twitter: “BTC Aggregate CVDs & Delta: Lower time frame cases, but quite clear spot absorption around the high, so $27.2K is a key price area to clear for spot buyers. Most of the push-up was driven by the perpetrator, with a bargain price (short liquidations and a strong bid for the perpetrator).”
Skew’s chart shows that momentum was mainly supported by short liquidations and firm bids in the perpetual markets. When the $27,200 threshold was reached, selling began in the spot market, signaling a potential local high for the Bitcoin price.
Adding to the data, on-chain analytics firm Santiment confirmed that open long and short Bitcoin positions soared as Bitcoin’s price enjoyed a bullish turn on Thursday. The chart shared by Santiment correlates Bitcoin’s rise with increased open interest in the futures market.
“After a quick price recovery after those longs and shorts closed quickly yesterday, they have remained high today, allowing prices to maintain their levels,” the on-chain tracker said.
On a bullish note, Santiment commented that Bitcoin sharks and whale addresses, which are defined as 10-10,000 BTC wallets, have now reached their highest amount in 2023, which is 13.03 million BTC. In addition, Tether sharks and whales gather their purchasing power. “This is generally a bullish combination,” Santiment noted.
Nevertheless, the analytics firm also sounded a note of caution: “The long-term outlook is bright for Bitcoin, with whales accumulating BTC and USDT. However, expect a short-term correction with traders’ profits falling heavily as it hit $27K on Thursday. When the 7D MVRV falls below 0, it can be ideal for a new step up.”
Their data further highlights that yesterday’s major move saw Bitcoin post its highest gain/loss figure in the past quarter, which generally signals an impending short-term correction.
DaanCrypto, another industry expert, noticed during the price fluctuation: “Bitcoin price up, Spot Premium up, financing down. This move has led to a strong, sustained bid for the spot so far, which looks quite healthy at the moment.”
This also applies to the well-known crypto analyst Exitpump agreed during the price crescendo with the observation: “BTC Binance spot order book: found myself hunting for a bid on the book with big asks slightly above the price, it’s getting interesting. Maybe a fake buy wall, but I think it will only go higher.
What’s Next for the BTC Price?
As detailed in one of our latest analyses, Bitcoin price faces a crucial monthly close tomorrow, Saturday. Rekt Capital, a seasoned crypto analyst, recently highlighted the significance of Bitcoin’s impending monthly candle close.
Through X, he highlighted that Bitcoin currently views the $27,000 mark as resistance. He explained: “Bitcoin needs to close above $27,091 monthly for this to be a fake analysis. Otherwise the fault is technically confirmed.” In this case, a decline towards $23,000 could be imminent.
On the 1-day chart, Bitcoin is showing strong bullish momentum today. The BTC price has managed to break the (black) trend line. Today’s task is to defend the retest. If successful, a monthly close above $27,100 seems very likely, and a rally similar to June could be possible.
Featured image from Shutterstock, chart from TradingView.com