Insights into the Rise of Bitcoin's Price Today

Bitcoin's price is on the rise today, surpassing $63,000, fueled by indications from on-chain data that wallets accumulating BTC are increasing their balances.

Source: www.cybermagonline.com

Bitcoin's price started its rebound on April 18, reclaiming the $63,000 mark as it spearheaded a broader market recovery in the crypto sphere. Market data illustrates that on April 18, Bitcoin surged swiftly from its opening at $60,618, marking a 5.5% increase to reach an intraday peak of $64,240. This upward momentum not only recuperated losses from April 17 but also sparked speculation among traders about whether the retracement has concluded. Let's delve into the factors contributing to today's rise in Bitcoin's price.

Bearish Crowd Sentiment Suggests That The Market Has Hit Bottom

Market intelligence firm Santimet indicates that crypto crowd sentiment has shifted bearish after the recent downturn in Bitcoin's price. In an April 18 post on X, the firm revealed a chart illustrating consistent bearish commentary from the crypto community regarding Bitcoin, as well as other major tokens like Ether and Solana.

Social Volume and Sentiment to Crypto Source: Santiment

It illustrates a decline in mentions of the bull market or bull cycle on crypto social media platforms since March 14, coinciding with Bitcoin's record high of $73,835. Conversely, there has been a consistent uptick in mentions of the bear market bear cycle during the same period. The Bitcoin price has faced downward pressure due to diminished expectations of Fed rate cuts in 2024 and increasing geopolitical uncertainties, resulting in a 10% weekly decline at the time of reporting.

According to data from analysts, a platform monitoring emotions and sentiments surrounding Bitcoin, the Crypto Fear and Greed Index has notably decreased from last week's value of 76 and last month's figure of 79, both indicating extreme greed. However, it still remains within the greed zone, currently at 66. This indicates that Bitcoin traders maintain a positive outlook despite experiencing over a week of price corrections.

Bitcoin Fear & Greed Index, Source: Alternative

Bitcoin Short Liquidations Surge

Bitcoin short liquidations have surged as today's price leap in the cryptocurrency market appears to be driven by a sharp movement in Bitcoin futures. Over the past 24 hours, more than $32.52 million in BTC short positions have been liquidated, contributing to a total of $174.9 million in liquidations across the crypto market, according to data from Coinglass. This surge in short liquidations coincides with a sudden rise in Bitcoin's price, indicating that traders who had opened short positions are facing losses as the market moves against them.

Bitcoin Holders Continue to Exhibit High Levels of Accumulation Activity

During Bitcoin's recent dip below $60,000, there was a notable surge in accumulation among investors. Data from showed a substantial movement of over 27,700 BTC, valued at approximately $1.72 billion, on April 15. Bitcoin accumulation is being facilitated through a reduction in BTC deposits on exchanges. Additional insights from CryptoQuant indicate that the volume of deposit transactions to identified exchange wallets began dwindling on March 5, coinciding with BTC surpassing its previous all-time high of $69,000. This trend persisted through April 12, despite a price drop of over 8% to a low of $65,115 on that day. From March 5, where there were 38,910 transactions, to April 15, the number of BTC deposits on exchanges declined to 21,866. Reduced BTC transfers to exchanges indicate a diminished inclination to sell, typically signaling a bullish sentiment.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.