It certainly looks like Pioneer Crypto Asset is on the move again.
Bitcoin struck past $118K on Friday morning, posting a new all-time high.
With Bitcoin reaching new all-time highs, Friday saw short sellers get crushed as over a billion dollars’ worth of short positions on Bitcoin were liquidated in just one day.
CoinGlass data short positions on crypto totaling $1.25 billion were liquidated, impacting 267,218 traders.
These liquidations happened simultaneously with Bitcoin hitting a new record of 118K on Friday, marking its second consecutive day of record highs, along with Ether rising to 3K.
Investors expect records to be reached in the second half of the year, given that corporate treasuries have been increasing their Bitcoin holdings and crypto legislation is nearing passage by Congress.
This has been a gratifying moment for long-term holders who have chosen to endure the asset’s turbulent history, bearing the brunt of the losses during downturns.
The latest rally appears to be fueled by a combination of ongoing exchange-traded fund (ETF) inflows, strong on-chain metrics, renewed institutional interest, and expectations for Fed rate cuts in Q3.
“Bitcoin’s new all-time high has been surpassed as institutions relentlessly accumulate, key players are purchasing the available supply and using platforms to buy.” With crypto week set for next week in DC, along with a likely buildup of positive momentum,
Bitcoin could gap up to $120,000 or more by week’s end due to heightened bullish sentiment and low trading volumes.
Tech stocks surged on Wednesday as Nvidia made history, becoming the first company to briefly reach a $4 trillion market cap. Investors appeared unfazed by the latest tariff news from President Donald Trump, leading to a record close for the tech-heavy Nasdaq Composite.
While most institutional investors have incorporated Bitcoin into their portfolios, viewing it as “digital gold,”
It remains a risk asset that fluctuates with stock prices based on investor sentiment. Bitcoin and cryptocurrencies generally increase in value during a risk-on environment, when investors buy growth assets,
Bitfinex analysts noted that Bitcoin traders are showing a “lack of follow-through strength” as BTC struggles to break its all-time high. Bitfinex analysts observed that when BTC traded near 108,500, “Bulls are hesitant or unable to push prices significantly higher without fresh catalysts or clearer macro signals.”
However, some remain optimistic. Michaël van de Poppe, founder of MN Trading Capital, shared his insights on June 30. He suggested Bitcoin might continue to rise toward the key psychological level of $120,000 as it enters a price discovery phase.
The daily chart’s Relative Strength Index (RSI), which stands at 71, above its overbought level of 70, indicates strong bullish momentum. Yet, because it’s overbought, traders should be cautious, as a pullback is likely.
The daily chart’s Relative Strength Index (RSI), which stands at 71, above its overbought level of 70, indicates strong bullish momentum. Yet, because it’s overbought, traders should be cautious, as a pullback is likely.
A bullish crossover appeared at the end of June on the Moving Average Convergence Divergence (MACD) indicator. Additionally, rising green histogram bars above the neutral zero-line signal increase bullish momentum and an ongoing upward trend.
It appears that optimists are in control after bearish sentiment dominated much of 2023, largely driven by increased demand for Bitcoin.
Although some bearish selling still exists due to the ongoing “cumulative demand” trend, the rapid recovery of this metric suggests buyers are stepping in.
The environment now shows strong foundational interest in spot Bitcoin, with recent strategic accumulation outweighing short-term selling.