Bitcoin is inching closer to the $45,500 mark, exhibiting signs of a bullish trend after the Wall Street opening on February 8. The cryptocurrency has seen a surge, reaching its highest price levels in the past month, currently hovering around $45,348.
Bucking the trend of a persistent trading range, Bitcoin’s strength is evident, with a 2.5% increase in its value at the time of reporting. This positive momentum is setting the stage for potential significant moves in major altcoins.
Amid the upward movement, concerns arise about the role of leveraged traders in driving this surge. The open interest has surged by nearly $1 billion in less than 24 hours for Bitcoin alone, sparking discussions about the impact of leveraged positions on the market dynamics.
Despite these concerns, market sentiment appears optimistic, aiming to recover some of the losses incurred since Bitcoin’s descent from its two-year highs of $49,000 on January 11. Notably, popular trader Jelle suggests that a daily close above $45,000 could lead to further upward movement, emphasizing the importance of patience in the current scenario.
Credible Crypto points out the resilience of the market against aggressive short positions, indicating that sellers are struggling to exert significant influence on the cryptocurrency’s price. Additionally, trader Bagsy suggests that those who exited the market during the launch of the United States spot Bitcoin exchange-traded funds (ETFs) last month might be considering reentry.
Taking a broader perspective, financial commentator Tedtalksmacro highlights the critical level of $43,800, which, if held, could prevent a significant retracement in Bitcoin’s price. Emphasizing the importance of the 50-day exponential moving average (EMA) at $42,330, he suggests that maintaining bullish momentum should prevent testing the $41,800-$42,000 range again.
In summary, Bitcoin’s current trajectory indicates a potential breakout, with traders closely monitoring key levels and market dynamics to gauge the sustainability of this upward trend.