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The divergence between long and short positions intensified, and BTC took advantage of the opportunity to attack $62,000

BlockBeatsBlockBeats2024/08/09 02:46
By:BlockBeats

Analyst Roman said that Bitcoin's recovery is currently progressing smoothly, but there is still a risk of falling again, so cautious optimism is needed in the short term.

Original title: "Recession expectations are "slapped in the face", BTC takes advantage of the opportunity to attack $62,000"
Original author: Mary Liu, BitpushNews


On Thursday, data released by the U.S. Department of Labor showed that the number of first-time unemployment claims in the week ending August 3 was 233,000, lower than the 250,000 in the previous week and lower than the 240,000 expected by economists, reducing people's concerns about the impending economic recession in the United States, investor sentiment has risen, and financial markets have turned to recovery on Thursday.


According to CME "Fed Watch" data, the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 43.5%, and the probability of cutting interest rates by 50 basis points has dropped to 56.55%.


At the close of the day, the SP, Dow and Nasdaq all rose, up 2.30%, 1.76% and 2.87% respectively. The SP 500 recorded its largest one-day gain since November 2022.


Bitcoin data showed that Bitcoin rebounded from a low of around $54,700 in the early morning, with bulls going all the way to over $59,000, and breaking through the support levels of $60,000 and $62,000 in the late trading. As of press time, BTC was trading at $62,414, up nearly 13% in 24 hours.



Altcoin markets rose across the board, with only two of the top 200 coins in the red.


Mog Coin (MOG) led the gains, up 27.4%, Sui (SUI) up 23.6%, and Ponke (PONKE) up 20.4%. Aave (AAVE) fell 2.1% and MANTRA (OM) fell 0.9%.


The overall cryptocurrency market cap is currently $2.09 trillion, with Bitcoin accounting for 56.4% of the market.


Analysts at Secure Digital Markets said: "Bitcoin is beginning to regain momentum and is experiencing some volatility. We have finally seen a decisive breakthrough above the key resistance level of $58,000, with prices now targeting the next targets of $60,250 and $63,000. Funding rates have stabilized across the board, and as the rally is primarily spot-driven, signs are bullish."


Multiple positive news revived market sentiment


On Thursday, a U.S. judge approved a consent order requiring FTX and its sister trading company Alameda Research to pay $12.7 billion to creditors, ending the 20-month lawsuit. Many predict that as former FTX users reinvest their funds in digital assets, some of the funds will flow back into the cryptocurrency market, and market liquidity and depth will be greatly improved.


At the same time, Russian President Vladimir Putin signed a bill legalizing cryptocurrency mining in the country. Ki Young Ju, CEO of cryptocurrency analysis firm CryptoQuant, said: "Russia seems to be taking action to keep up with the United States. Bitcoin FOMO (fear of missing out) at the national level is heating up, and their participation will increase hash rate, strengthen network foundations, and diversify miners."


The years of legal disputes between Ripple and the U.S. Securities and Exchange Commission (SEC) have also ushered in a phased result. A federal judge fined Ripple $125 million, ruling that its retail sales through exchanges did not violate any laws. Following the news, XRP surged from $0.50 to $0.64 (up 28%), with trading volume reaching $4.2 billion (up from $1.2 billion on Tuesday) and open interest jumping by $200 million.


Cautious Optimism in the Short Term


Despite these catalysts, JPMorgan remains cautious about the future development of the cryptocurrency market, which analysts believe may already be reflected in the price. The bank said that because the price of Bitcoin remains too high relative to its production cost and gold, with the average production cost of Bitcoin mining being around $49,000, any price movement below that level will put pressure on miners, further depressing BTC prices.


Market analyst Roman said that Bitcoin's recovery is currently progressing well, but he "still expects Bitcoin to retest $60,000 and then fall to a low before we try to achieve a potential reversal."



The chart provided by Roman shows that the price of Bitcoin will first climb to $60,000 and then gradually fall to the support level of $54,000: "The price action also shows bearishness (falling volume + rising prices), so I expect the price to fall once the resistance level is reached."


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Prominent trader Peter Brandt tweeted on August 8 that he sees a 50% chance that Bitcoin will fall below $40,000 before its next rally.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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