Understanding the Secrets Behind Bitcoin Price Spike Today
Over the course of the previous day, Bitcoin saw a slight uptick, rising by about 1.5% to reach a high of $61,700 as of June 28. This higher trend coincides with more general advances in the cryptocurrency market, driven by VanEck’s Solana ETF application and the return of inflows into the Bitcoin ETF. However, at the time of writing, Bitcoin has started to fall again, down to $61,054.
The three days in a row that money has been flowing into U.S.-based Bitcoin ETFs prior to today’s advances, suggest that risk appetite has returned after a week-long period of withdrawals. These Bitcoin ETFs’ assets under management as of June 27 were $14.44 billion, up from the low of $14.383 billion set three days prior. But on June 6, these funds reached their highest point with $15.68 billion in assets.
Bearish Pennant Pattern Seen on Bitcoin Charts
The current surge in Bitcoin prices is a result of price variations within the overall trend of consolidation. Given the prior downward movement of Bitcoin, it is interesting to note that this pattern seems to be forming a pennant, which raises the possibility of a bearish continuation ahead.
When the price breaks below its lower trendline and declines to the height of its prior downtrend, a bear pennant is resolved. When the same technical criterion is applied to Bitcoin’s continuous price patterns, the cryptocurrency’s July downside objective drops to $56,250, or roughly 8.5% below its current price levels.
- The prospect of Bitcoin falling is being tested by the presence of two strong resistance levels.
- 50-4H exponential moving average & descending trendline.
- There is a risk to the Bitcoin price as both are aligned with the upper trendline of the pennant around $62,000.
FAQ
How Much Has Bitcoin Changed in the Last 24 Hours?
On the last 24-hour chart, Bitcoin is down 1.62% to $61,054.
Why is Bitcoin Volatile?
The volatility of Bitcoin is determined by the interaction of several factors. Firstly, its limited supply and variable demand can lead to sudden price changes. Regulatory decisions, government policies, and tax regulations create uncertainty, triggering fluctuations in Bitcoin prices. Investor sentiment and market expectations can rapidly alter prices, while technical factors such as infrastructure and blockchain updates also contribute to these fluctuations. Lastly, the limited liquidity of the Bitcoin market allows large buy or sell orders to significantly impact prices. Together, these factors constitute the fundamental dynamics behind Bitcoin’s price volatility.
What is Risk Appetite?
An investor’s ability or willingness to assume risk in an investment or transaction is typically correlated with their risk appetite. In other words, it describes an individual’s or an organization’s ability to accept and control a specific financial or operational risk.
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