The price of Bitcoin has recorded an impressive rally to the upside, breaking above the $64,000 price after coming from the $56,000 price.
Despite a mixed April, Bitcoin seems well poised to start the month of May on the right foot. The cryptocurrency recorded an increase of 4.5% in 24 hours, reaching a peak of $63,107 on Saturday.
The gains recorded by the crypto asset are occurring after massive liquidations were observed across the crypto market, which has spurred positive sentiments from traders and the wider market.
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This bullish movement is reported to have caught many bearish traders off guard who had sentiments that the price would continue to dip. According to data from Coinglass, an equivalent of $26.65 million in short positions were liquidated within only 4 hours. In total, nearly 50,000 traders were caught offside by the market.
Reports disclosed that the uptick in the price of Bitcoin is influenced by the US Federal Reserve’s decision, to halt further interest rate increases, a policy move that often favors investments like Bitcoin.
Also, the inflows into Bitcoin ETFs which totaled $378 million on May 3, and the launch of similar products in Hong Kong, triggered a renewed and growing confidence amongst investors.
Recall that Hong Kong recently approved the launch of exchange-traded funds (ETFs) that directly invest in bitcoin and ether, the world’s largest cryptocurrency tokens as the city seeks to take pole position in the burgeoning virtual asset sector.
Notably, Bitcoin’s gain isn’t in isolation as several altcoins and meme coins recorded similar flows. Ethereum price surged to $3,112, a 2.33% increase in the last 24 hours. Solana, Cardano, and Ripple prices also went up with memecoins outpacing the market.
With the price of Bitcoin trading at $63,662 at the time of writing this report, the technical outlook suggests a bullish price prediction as buying intensifies.
According to analysis, Bitcoin’s recent activity on the 4-hour timeframe illustrates a bullish trend, marked by a crossing above the 50-day Exponential Moving Average (EMA) at $61,574, which previously acted as resistance.
The formation of a ‘three white soldiers’ candlestick pattern suggests a strong possibility for continued bullish momentum. However, there is a noted resistance at approximately $63,200, where a downward channel may temporarily restrict upward movement. Should Bitcoin break above this threshold, it may swiftly approach the next resistance level at $64,564.
A further bullish breakout could potentially propel Bitcoin towards higher resistance levels of $67,084 and even $70,000, following a clear breach of a double-top pattern near $67,000.
The Relative Strength Index (RSI), currently at 63, supports this optimistic outlook, indicating a dominant bullish sentiment in the market. Analyzing the recent correction in the Bitcoin price, analyst Crypto Con suggests that the market correction that occurred in April after the fourth halving event, was necessary for the long-term price trajectory.
Crypto analyst Titan of Crypto has provided further bullish predictions for the price of Bitcoin price, suggesting that recent corrections have resulted in the grabbing of leverage longs liquidity.