The cryptocurrency market, led by Bitcoin (BTC), surged nearly 5 percent in the past 24 hours to hover around $2.4 trillion on Monday during the early Asian session. Bitcoin price closed in a bullish outlook last week after being trapped in bearish sentiment in the prior four weeks.
The flagship coin had added around 5 percent in the past 24 hours to trade at about $62,600 at the time of this report. Ethereum (ETH) led the altcoin industry in a bullish trend.
Top Reasons Bitcoin Price Surged
Increased Whale Demand
Bitcoin price received a much-needed bullish boost from whale traders in the past week. As the German government concluded its Bitcoin sales over the weekend, on-chain data shows that whale traders were busy accumulating more coins.
Specifically, on-chain data shows Bitcoin whales added 71k coins last week despite short-term traders capitulating. Additionally, US-based spot Bitcoin ETFs registered more than $1 billion in cash inflows last week, led by BlackRock’s IBIT and Fidelity’s FBTC.
Waning Crypto Capitulation Fear
As Bitcoin price surged above $62k earlier today, the fear and greed index also rebounded above 50 percent, neutral, from around 25 percent, extreme fear, last week. With the crypto market already in a macro bullish trend, the recent capitulation was viewed as an opportunity to buy more crypto assets in preparation for the parabolic rally ahead.
General Bullish Outlook
Bitcoin’s price has led the crypto industry to regain its correlation with the stock market, which has been bullish recently. Last week, economic data from the United States signaled a possible interest rate cut later this year if inflation continues to ease.
Meanwhile, the upcoming final approval of spot Ether ETFs in the United States will be a major win for the bullish sentiment.
Technical Analysis
After Bitcoin’s price rebounded above crucial support/resistance level around $61k, it is evident that the flagship coin is a digital gold awaiting further upsurge. From a technical standpoint, Bitcoin price is aiming for $70k if it consistently closes above the daily descending broadening wedge in the coming weeks.
Otherwise, a possible capitulation could still send Bitcoin price towards $52k for a consolidation before the onset of the euphoric rally.
