Bitcoin reached $61,000 for the first time in nearly one month in a new burst of bullish market action. On April 10, the flagship crypto returned above $60,000 as a bout of long-overdue volatility hit the market in line with the experts’ and analysts’ expectations.
Bears Are Currently Weak
TradingView showed a rapid push enabling BTC/USD to leave the $50,000 corridor overnight on April 9. This move had been weeks in the making since a strong attack on $60K resistance which is the last before all-time highs had failed to materialize previously.
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) April 7, 2021
However, this time around it seemed different with bitcoin going on to surpass $61,000 before it started consolidating above $60,500 at the time of writing.
One quant analyst Lex Moskovski noted as the market turned:
“$163,745,606 of Bitcoin shorts liquidated in an hour. While Bitcoin is grinding up to another ATH. Being a bear is expensive.”
That picture was surprising for the traders that had spent several weeks in a sideways market that occasionally tapped multi-week lows. The force behind the latest surge was yet to become clear at the time of writing, as was the real extent of its sustainable power given the critical nature of $60,000 as a psychological support level to hold.
A notable change was funding rates across the crypto exchanges that had plunged significantly in the previous days. That scenario translates to reduced friction at and above $60,000 before surging as the market spiked higher.
No Sign Of A Market Top
Some traders and analysts had called for an optimistic take on the market set up earlier this week. Among the vocal contributors was Filbfilb, the co-founder of trading suite Decentrader. He said that Bitcoin at $58,000 had a lot in common technically with BTC at $20K. He told subscribers of his Telegram trading channel on April 9:
“I’m still very bullish above 58K. Structure the same as at 20K IMO; a lot of other market nuances similar too in order flow and depth.”
On April 8, another Decentrader analyst Philip Swift had expressed similar ideas, using the forthcoming cross of two critical moving averages to suggest that bitcoin had more room to run. These were the 111-day and 350-day moving averages with the latter multiplied by two, together referred to as Pi Cycle.
Swift wrote in a market update:
“My current near-term market outlook for Bitcoin is neutral-bullish, so my personal view is that there is a good probability this is not the market cycle top for Bitcoin when the Pi Cycle Indicator moving averages cross in a few day’s time. Other indicators and fundamentals are suggesting that we are not yet at the end of the market cycle.”
Others also agreed but they were slightly more careful. Statistician Willy Woo who warned that BTC might be completing the first of a “double top” price construction on April 9 summarized:
“Volatility is visibly lower this cycle.”
He added that once cleared, the $1 trillion market cap level that corresponds with bitcoin trading above $53,600, would “unlikely” be broken again.