Bitcoin Momentum Traders Receive Long-Awaited Signal

The bitcoin price, currently at $76,586.57, has surpassed $78,000, bolstering the broader cryptocurrency market. This upward movement follows an improvement in risk sentiment after US President Donald Trump extended the ceasefire with Iran, also contributing to gains in stock index futures. After weeks of fluctuating between $65,000 and $75,000 in March and early April, bitcoin's ascent has finally given momentum traders the green light they were waiting for. Momentum traders typically buy when they observe evidence of an upward trend, and bitcoin's breakout serves as this proof, potentially attracting more buyers and amplifying the momentum. According to analysts at Marex, 'The market spent months capped in the 65 to 75 range. Breaking out of that kind of 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 outlook, with the number of coins held in wallets tied to centralized exchanges dropping to a fresh multi-year low of 2.67 million BTC, according to CryptoQuant, indicating continued investor accumulation that 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 advises caution, pointing out the persistent relative richness of bitcoin put options on Deribit, which are used as a hedge against potential price drops. The firm added that crypto trends seem tied to the price of oil and the interest-rate outlook. In traditional markets, WTI crude futures are trading around $90, having rebounded from a low of $78 on Friday. Meanwhile, DeFi security risks persist due to hacks, with the Sui-based Volo protocol being drained of over $3 million, following the KelpDAO event that caused collateral damage across the sector. The bitcoin price has established a firm foothold above the 100-day average, which is pivotal as it previously capped the bounce in January. Now, the focus shifts to the 200-day average, currently at $85,900.