Bitcoin Traders Receive Long-Awaited Momentum Signal

The bitcoin price, currently at $77,455.30, has surged past $78,000, boosting the entire cryptocurrency market. This upward movement occurred as market sentiment improved following US President Donald Trump's extension of the ceasefire with Iran, also leading to gains in stock index futures. After weeks of volatile trading between $65,000 and $75,000 in March and early April, momentum traders have finally received the signal they were waiting for to invest in bitcoin. Momentum traders typically invest when they see evidence of an upward trend. Bitcoin's recent breakout is a clear indication of this trend, and as a result, more buyers may invest, further increasing momentum. According to analysts at Marex, 'The market spent months capped in the $65 to $75 range. Breaking out of that range matters because it changes behavior. Sellers who were comfortable fading rallies above $74 now have to reassess. Momentum buyers who were waiting for confirmation finally have something to lean on.' On-chain indicators also support this trend. For instance, the number of coins held in wallets tied to centralized exchanges has dropped to a fresh multi-year low of 2.67 million BTC, according to CryptoQuant. This suggests continued investor accumulation, which could lead to a supply shock. Delta Exchange noted, 'Bitcoin supply on exchanges continues to shrink, with fewer coins available to sell, more BTC moving to long-term holders, and liquidity tightening. Bitcoin is becoming increasingly scarce – supply down means volatility up.' However, QCP Capital is urging caution due to the persistent relative richness of bitcoin put options on Deribit. The firm noted that crypto trends currently seem tied to the price of oil and the interest-rate outlook. In traditional markets, WTI crude futures are trading around $90, having bounced from a low of $78 on Friday. DeFi security risks remain a concern as hacks continue to occur. The Sui-based Volo protocol was recently drained of over $3 million, just days after the KelpDAO event caused collateral damage across the sector. The chart shows bitcoin's daily price movements, with lines indicating the 100-day and 200-day average prices. Bitcoin's price has established a firm foothold above the 100-day average, which is pivotal as it capped the bounce in January. Now that the price has pierced through, it typically signals a strengthening of bullish momentum, with the focus shifting to the 200-day average, currently positioned at $85,900.