Bitcoin is showing strong bullish signs, breaking above $65,000. This signals the start of a new bull market. After falling to a low of $59,800 last week, Bitcoin has recovered and is now moving higher. Traders are closely watching the $65,000 mark, believing it to be a key level that will determine the future direction of the market.
The latest market data shows growing confidence among traders. Despite nearly eight months of consolidation, Bitcoin appears to be strengthening. Analysts point to the increased buying activity as a potential signal of an impending breakout.
At the time of writing, Bitcoin had reached $65,186 before stabilizing at around $64,990. This push towards higher levels is being closely watched, as it could lead to Bitcoin retesting its previous all-time high.
The start of earnings season is a major factor influencing Bitcoinâs performance. Bitcoinâs price continues to be tied to shifting expectations for global interest rate cuts. Furthermore, the unpredictable US presidential election adds to the uncertainty in global financial markets, potentially impacting Bitcoinâs direction in the coming weeks.
Retail investor interest in Bitcoin remains low compared to previous bull cycles. This time, institutions, such as ETF investors, are driving the marketâs activity. Mixed ETF flows last week suggest a cautious sentiment among these investors, in contrast to the retail-driven bull runs of previous years.
Short selling liquidations add to bullish momentum
Another influential factor is the liquidation of short positions. Following Bitcoin's recent price surge, around $100 million in short positions across various cryptocurrencies were liquidated.
Data from CoinGlass shows that the total amount of liquidations exceeded $180 million, suggesting that bearish traders may have misjudged the market, leading to a significant unwinding of positions.
Bitcoinâs ongoing consolidation phase has been marked by steady ups and downs. However, with the $65,000 resistance level broken, many traders are looking for a sustained breakout. The focus now is on whether Bitcoin will maintain its current value or move higher in the coming days.
