The bitcoin price, currently at $75,923.42, has surpassed $78,000, boosting the broader cryptocurrency market. This move follows an improvement in risk sentiment after U.S. President Donald Trump extended 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, bitcoin's ascent has finally given momentum traders the signal they were waiting for.
Momentum traders typically buy when they see evidence of an upward trend, and bitcoin's breakout is a clear indication of this. As a result, more buyers may enter the market, further adding to 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 suggest the same 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 data source CryptoQuant. This points to continued investor accumulation, which could culminate in a supply shock. Delta Exchange noted on X, '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, citing the persistent relative richness of bitcoin put options on Deribit. Puts are used as a hedge against potential price drops in the underlying asset. The firm added 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. The broader market continues to face DeFi security risks as hacks proliferate.
The Sui-based Volo protocol was drained of over $3 million, just days after the KelpDAO event caused collateral damage across the sector. For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today. For a comprehensive list of events this week, see CoinDesk's 'Crypto Week Ahead.' The chart shows bitcoin's daily price movements in candlestick format, with lines indicating the 100-day and 200-day average prices.
BTC's price has established a firm foothold above the 100-day average, which is pivotal because the 100-day average capped the bounce in January. Now the price has pierced through, signaling a strengthening of bullish momentum, with the focus shifting to the 200-day average, currently positioned at $85,900.