An analyst suggests that King Crypto, Bitcoin, may not encounter much resistance until it reaches the $65,000 mark
In the early hours of trading, Bitcoin surged above $60,000 but then fluctuated between the $58,500 and $59,700 range. Marathon Digital Holdings Inc., a prominent Bitcoin mining company, has announced plans to raise an additional $250 million through a debt offering to acquire more Bitcoin.
Meanwhile, Ethereum has breached the $2,700 mark, reaching its highest level since last week's Monday sell-off. The second-largest cryptocurrency has seen a more than 7% increase over the week. However, there have been significant liquidations in the cryptocurrency market, totaling nearly $170 million in the past 24 hours. Downside bets have resulted in losses exceeding $92 million.
Both Bitcoin and Ethereum have experienced a substantial increase in funds locked in their futures markets. Bitcoin's open interest has risen by 3.94%, while Ethereum's open interest has surged by 8%. The market sentiment has improved slightly from "Extreme Fear" to "Fear" due to the recent rally, as indicated by the Cryptocurrency Fear & Greed Index.
The global cryptocurrency market currently stands at $2.05 trillion, but it has declined by 3.75% within the past 24 hours.
In the stock market, trading remained volatile on Monday. The Dow Jones Industrial Average closed with a loss of 140.53 points or 0.36%, ending at 39,357.01. The S&P 500 had minimal changes, finishing only 0.23 points higher at 5,344.39. On the other hand, the tech-heavy Nasdaq Composite experienced a slight gain of 0.21%, reaching 16,780.61 at the closing bell.
Investors have taken a cautious approach in anticipation of the release of key inflation data. While the producer price index for July is scheduled for release on Tuesday, the consumer price index will be made available by the Bureau of Labor Statistics on Wednesday. These reports are expected to provide insights into the health of the economy following last week's sell-off frenzy.
In terms of technical analysis, cryptocurrency influencer and trader Kevin Svenson has pointed out Bitcoin's breakout from a Diamond Bottom pattern on a 30-minute chart. This pattern is characterized by oscillations between lower highs and higher lows, resulting in a narrowing range that forms a diamond shape. An upward breakout typically indicates a potential reversal from a downtrend. Additionally, the widely-followed cryptocurrency trader Byzantine General has observed Bitcoin's attempt to breach the $60,000 mark and predicts a continued upward movement.
According to the trader, there is consistent spot premium without excessive speculation, indicating that the current momentum is driven by spot trading. Furthermore, the trader suggests that there is not much resistance in the market until Bitcoin reaches $65,000.