Behind Bitcoin’s Surge Above $64,000: Here Are The Key Drivers of the Current Rally
July 18 2024 - 4:00AM
NEWSBTC
Bitcoin price has rallied above the $64,000 mark. Glassnode, a
market intelligence platform, has analyzed this notable increase,
which attributes the current price movement to a significant easing
of sell-side pressure, particularly from the German government.
Exhaustion of Sell-Side Pressure According to the on-chain data
provided by Glassnode, the recent uptick in Bitcoin’s price is
largely due to what they describe as the “complete exhaustion” of
sell-side forces, particularly those stemming from the recent
governmental actions. Over the past weeks, the German government
has been a big seller, selling off tonnes of Bitcoin, leading to an
earlier price decrease at below $54,000. Related Reading:
Institutions Grab Over $5 Billion Bitcoin in a Week: Are They
Predicting a Mega Rally? Nevertheless, despite these sales, the
market has not moved lower than that mark, suggesting that this
selling was anticipated and factored into prices by the markets.
Glassnode’s report highlights that from July 7 to July 10,
approximately 39,800 BTC flowed out of labeled wallets, marking a
critical phase of market absorption. Also contributing to the price
surge, as highlighted by Glassnode are inflows into Bitcoin
exchange-traded funds (ETFs), which have garnered renewed investor
attention in recent weeks. Over the last week, ETFs have reported
over $1 billion in inflows, suggesting a renewed confidence in
Bitcoin among institutional investors. Glassnode noted in the
report: As prices sold off towards the $54k low, they dropped below
the average inflow cost basis of ETF holders, which is currently at
$58.2k. In response, the ETFs have seen their first significant
tranche of positive interest since early June, with over $1B in
total inflows last week alone. Furthermore, the decline in exchange
flows – deposits and withdrawals – remains a significant sign of
waning sell-side pressure. Lower exchange flows generally indicate
reduced market liquidity and selling, which can provide price
support or an upward momentum. Current exchange volumes have cooled
off at about $1.5 billion daily, unlike the higher marks seen in
March. Related Reading: Bitcoin Bullish Signal: NVT Golden Cross
Suggests BTC Oversold Major Rally for Bitcoin On The Horizon? As
Bitcoin maintains its position above $64,000, showing an 11.5%
increase over the past week, the market appears increasingly
bullish. Insights from prominent crypto analyst Rekt Capital
indicates that overcoming $65,000 might see Bitcoin enter a new
high price cluster zone – one that can push BTC towards as much as
$71,500. #BTC The moment Bitcoin breaks $65,000 (blue) is the
moment Bitcoin will form a new red cluster of price action Breaking
$65,000 would mean price would be ready to move inside the
$65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/yxOhRsmVU9
pic.twitter.com/TZMP37ufjx — Rekt Capital (@rektcapital) July 16,
2024 Additionally, whale activity continues to demonstrate
confidence in Bitcoin’s long-term value. Recent transactions
highlighted by Lookonchain, such as a notable whale purchasing 245
BTC for nearly $16 million, underscore the strategic accumulation
amidst this rally. Featured image created with DALL-E, Chart from
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