Over this past weekend, Bitcoin (BTC) experienced a significant rally, pushing its price above $63,000—an increase of 5.6% since hitting a low below $60,000 on Friday. The unexpected rise in price occurred without any major triggers. This led to speculations about the causes. We’ll take a look at the three main factors which could have influenced this weekend’s prices.
One Mysterious Crypto Whale Activity
DeFi2 is the top trader and wallet in DeBank. According to DeFi2 @DefiSquared, an unknown entity has been stealing money from accounts. “whale” Binance’s perpetual futures markets have been very active. DeFi^2 noted This entity has been involved in significant purchases, according to the statement. “Since the local BTC lows on Friday, almost the entire bounce this weekend is from a single entity on Binance Perps that has hammered over $450 million in buys in 500 BTC blocks at a time during the lowest liquidity hours of the market.”
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DeFi2’s analysis led to speculation about whales’ potential strategies in light of the approaching impending Mt. Gox distributionHe elaborated, “This could also influence Bitcoin’s price stability and liquidity.” He elaborated, “Curious what the endgame is right before the start of Mt Gox distribution. With a position of this size, in order to exit they’ll either need to run the market high enough to cause a short squeeze, or end up becoming a massive cascade risk if the market goes against them.”
Second Open Interest Building
Crypto trader Daan Crypto Trading (@DaanCrypto), gave insights on how futures contributed to Bitcoin’s price movement. The focus of his analysis was the relationship between market price and open interest, an important indicator for market sentiment.
“During this run up, we’ve mostly seen Open Interest rise with a few relatively small short squeezes and some long profit taking in between. I think there’s a lot of underwater shorts from the ~$60K region that should get squeezed out if price were to keep grinding higher. That $65K region is still a big area to watch out for,” Daan wrote.
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Open interest for Bitcoin rose from $30.97billion on Saturday to 32.21billion on Monday. data Coinglass. Even though open interest was up, there were no major short squeezes over the weekend. This period saw a relatively low amount of BTC liquidation, only 35 million dollars.
Third Technical Breakout
The market’s momentum was also likely affected by a Bitcoin technical breakthrough. Popular crypto analyst, CRG (@MacroCRG). described The weekend price movements as an indicator of the upcoming week’s prices “beauty of a breakout.” He noted that the funding rate and perpetual futures base remained unchanged, which is usually a sign of a market movement.
“That’s a beauty of a breakout. Funding + perps basis flat. Weekly close in 1H + weekly candle is a ginormous pinbar with an 8% wick (high probability reversal candle). Full send,” He said.
![Bitcoin breakout](https://fxruhanahmed.com/2/wp-content/uploads/2024/07/1719839848_917_Bitcoin-Price-Blasts-Past-63000-Top-3-Reasons.jpg)
Bitcoin’s technical analysis shows it breaking through a downward trendline which has existed since the peak at around $72,000 early in June. CRG notes that the break-through of this trendline in the Binance 4-hour chart signals a possible reversal away from the current bearish trend.
Moreover, the BTC weekly close presents a significant bullish signal—a large pinbar candle with an 8% wick—indicating potential for upward movement.
BTC is currently trading for $63,232.
![Bitcoin price](https://fxruhanahmed.com/2/wp-content/uploads/2024/07/Bitcoin-Price-Blasts-Past-63000-Top-3-Reasons.png)
Featured image created with DALL·E, chart from TradingView.com
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Source: www.newsbtc.com