Bitcoin Surges Above $63,000 Amid Market Optimism
Bitcoin began the week by climbing above $63,000, but analysts at Bitfinex warn of a potential market retrace. Factors include BTC sell-off ending in Germany and upbeat sentiment around Donald Trump.
BTC has increased by 5% in the past 24 hours and 13% over the past week. This surge is due to several factors, including the end of the German government’s BTC sell-off and positive sentiment around former U.S. President Donald Trump. Over the weekend, Bitcoin broke above its 125-day range low of $60,200 after hitting lows of $53,500 earlier in the week.
Despite the recent rise, Bitfinex analysts suggest traders might need to wait for more definitive market moves.
Bitcoin’s start to the week saw it climb above $63,000, but analysts at Bitfinex warn that the market may be facing a retrace as the week progresses.
BTC is up 5% over the past 24 hours and by 13% over the past week. These gains have come amid a confluence of factors, including German government’s BTC sell-off ending and upbeat sentiment around former U.S President Donald Trump. Bitcoin price broke above its 125-day range low around $60,200 over the weekend after reaching lows of $53,500 earlier in the week.
However, analysts note that while the bounce might extend, traders should remain cautious.
In the weekly report Bitfinex Alpha, they stated that Bitcoin’s rebound above $60,000 could resemble previous weeks, where a retracement followed a brief weekend rally.
News Agenda Driving Market, Not Fundamentals
The Bitcoin Fear & Greed Index moved from fear to neutral, signaling improved sentiment post-sell-off. Market adjustments occurred as new information integrated swiftly.
“This shift in sentiment highlights the market’s capacity to quickly integrate new information and adjust expectations accordingly. However, we believe it is still important to focus on the market’s reaction over the first two trading days of the week,” Bitfinex analysts stated.
While the $60,200 level could serve as a crucial support, it might also turn into a resistance if bulls push higher. A decisive upward move may lead BTC to retest resistance around $70,000. However, a dip could invite new selling pressure.
Weekend Relief or New Sustained Rally?
Bitfinex analysts point out that weekends have recently given bulls some relief. Yet, bears have consistently resurfaced mid-week over the past eight weeks since prices last hovered around $70,000.
The “news agenda” may dictate short-term market movements. Traders are advised to watch out for potential new hurdles, such as Mt. Gox creditors.
The market’s trajectory remains uncertain, hinging on evolving news and trader sentiment.
