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In a fresh burst of bullish market play, BTC/USD hits $61,000 for the first time in nearly a month.
Bitcoin (BTC) returned to $60,000 on April 10 as the sector experienced long-awaited uncertainty, as predicted by analysts.
“Being a bear is expensive”
TradingView showed a sudden push allowing BTC/USD to exit the $50,000 corridor overnight on Friday.
The move had been weeks in the making — a convincing attack on $60,000 resistance, the last before all-time highs, had previously failed to materialize before.
— Alex Saunders ???? (@AlexSaundersAU) April 7, 2021
Now seemend different, however, with Bitcoin going on to pass $61,000 before consolidating at around $60,650 at the time of writing.
“$163,745,606 of Bitcoin shorts liquidated in an hour,” quant analyst Lex Moskovski noted on Twitter as the market turned.
“While Bitcoin is grinding up to another ATH. Being a bear is expensive.”
For traders who had spent weeks in a sideways market that sometimes reached multi-week lows, the image was also shocking.
On Saturday, the impetus for the new growth was already unclear, as was the true scale of its staying power considering the significance of $60,000 as a psychological support level to grab.
One noteworthy shift was the drop in funding costs across exchanges in recent days, which translated to less competition at and over $60,000 before spiking as the demand climbed higher.
No hint of a market top
Despite this, others have called for a bullish outlook on the economy this week. Filbfilb, co-founder of trading platform Decentrader, was one of them, claiming that Bitcoin at $58,000 had a lot in common with Bitcoin at $20,000.
“Above 58K, I’m already really bullish. Structure is the same as it was at 20K, IMO; several other market nuances, such as orderflow and depth, are also similar “On Friday, he informed subscribers to his Telegram trading channel.
A day earlier, Decentrader analyst Philip Swift expressed similar sentiments, citing the forthcoming cross of two significant moving averages as evidence that BTC/USD had more room to fly.
These were the 111-day and 350-day moving averages, multiplied by two to form the Pi Cycle.
“My current near-term market outlook for Bitcoin is neutral-bullish, so my personal view is that there is a good probability this is not the market cycle top for Bitcoin when the Pi Cycle Indicator moving averages cross in a few day’s time,” Swift wrote in a market update.
“Other indicators and fundamentals are suggesting that we are not yet at the end of the market cycle.”
Others agreed but were a little more sceptical, like statistician Willy Woo, who cautioned on Friday that Bitcoin could be nearing the end of the first of a “double top” price building.
“Volatility is visibly lower this cycle,” he summarized, adding that once cleared, the $1 trillion market cap level — corresponding to a Bitcoin price of around $53,600 — would “unlikely” be broken again.