Bitcoin Breaks $60K Barrier, Signaling Bullish Surge and Institutional Interest
Bitcoin has surged past the $60,000 mark for the first time in over two years, with a remarkable 6% rise in the 24-hour period leading up to 1:00 pm UTC.
Touching $60,001 on Binance at 1:11 pm, the world’s first cryptocurrency has seen a notable uptrend, boasting a 13% increase on the weekly chart and a substantial 37% rise over the past month, according to CoinMarketCap data.
This surge in Bitcoin’s price is largely attributed to market anticipation surrounding the upcoming halving event, historically known to stimulate increased buying activity.
Bryan Legend, CEO of Hectic Labs, explains that investors anticipate a reduction in supply to drive up prices, leading to a ‘Pre-Halving rally’ and initiating a new bullish sentiment.
This bullish momentum coincides with significant developments in the spot Bitcoin exchange-traded funds (ETFs) market in the United States. These ETFs broke an all-time high of $2.4 billion in daily trading volume on February 26, indicating a growing interest in Bitcoin among institutional investors. BlackRock’s iShares Bitcoin Trust ETF, for instance, recorded over 100,000 individual trades on February 27 alone, highlighting the increasing demand for Bitcoin among big players.
Moreover, institutional investors have played a major role in Bitcoin’s recent performance, as evidenced by the surge in daily inflows into BlackRock’s IBIT spot bitcoin exchange-traded fund.
The surge in Bitcoin’s price has also led to a substantial rise in liquidations, with over $300 million in total liquidations reported over the last 24 hours. Notably, nearly $15 million worth of short positions were wiped out in just one hour during this upward movement.
Looking ahead, Bitcoin’s upward trajectory continues as it targets its all-time high (ATH) after hitting the $60,000 milestone. Supported by rising moving averages and an overbought condition indicated by the Relative Strength Index (RSI), the market momentum favors the bulls. However, bears may seek to counter this trend by driving the price below moving averages, potentially leading to a consolidation phase. Nonetheless, if Bitcoin maintains its position above moving averages, it could establish strong support and further propel its price towards new highs, potentially breaking resistance levels and surging past the $70,000 mark.
