Top 5 Reasons Why Bitcoin Price Recovery Is Confirmed

Bitcoin (BTC) has once again captured the attention of investors as signs of a confirmed price recovery emerge. This comes after Bitcoin slumped from $67,000 to around $56,000, which has shaken the investor confidence while several analysts remained bullish. Hence, let’s take a look at the top 5 reasons why the Bitcoin price recovery is inevitable.

1. Whale Accumulation Amid Bitcoin Price Dip:

The recent revelation by CryptoQuant CEO Ki Young Ju regarding Bitcoin whale activity underscores a crucial aspect of market sentiment. He spotlighted the accumulation of 47,000 BTC within a 24-hour period. This accumulation, worth over $3 billion, signifies a strong vote of confidence from institutional investors. Ju referred to this development as the start of a “new era.”

Hence, a Bitcoin price reversal could be on the horizon. Meanwhile, Into The Block data suggests that the majority of new whales entered the market when the BTC value was around $58,000. Moreover, they spotted the possibility of a sell pressure when Bitcoin rebounds to $62,000, reiterating the risk factor despite the potential recovery signs.

2. Bullish Options Market:

Reports from professional option traders at Greeks Live highlight a series of substantial block trades in call options, signaling optimism among market participants. In a post on X, Greeks Live wrote, “Just in the past 6 hours, the options market has looked very BULLISH, with a series of super Block trades in CALL options that have not been seen in a long time!”

The Bitcoin options market has witnessed a significant surge in bullish sentiment, marked by a flurry of large block trades in call options, a phenomenon not seen in recent times. Among the notable transactions are two massive 65,000 call options with expiration dates set for September and December.

Each contract was valued at 93 BTC, approximately $3.35 million. Interestingly, despite the sizable investment, open positions declined, indicating a possible scenario where a previous holder closed their position, allowing a new whale to step in.

Another noteworthy move is the implementation of a September call ratio spread strategy. This strategy involves buying one contract of a 60,000 CALL option while simultaneously selling two contracts of a 90,000 CALL option. The net investment for this position amounted to 45 BTC, equivalent to $2.7 million. Moreover, the Greeks Live team suggests that investors are capitalizing on the current low implied volatility (IV) and market pullback to strategically position themselves. Furthermore, with theta, a measure of time decay, also at a low point, there is potential for further bullish momentum in the market.

Also Read: Bitcoin ETF Outflows Rebound To $34M As ARKB Buys The Dip

3. Robust Bitcoin Futures Open Interest

Despite recent price fluctuations and market turbulence, Bitcoin futures open interest remains robust. According to Coinglass data, the Bitcoin open interest stands stable at an impressive $27.94 billion. Futures markets serve as essential avenues for price discovery and risk management.

Hence, the sustained interest in Bitcoin futures underscores a persistent appetite from both institutional and retail traders to capitalize on future price movements. This high level of open interest suggests a widespread belief in Bitcoin’s long-term viability and potential for growth, providing further support for a confirmed recovery. However, earlier, when the Bitcoin price surged to a peak of $73,800, the open interest surpassed $38 billion.

4. Expert Predictions For Bitcoin Price

In a post on X, crypto analyst Captain Faibik noted that “BTC is currently Bouncing back but still moving inside the Falling Wedge pattern.” Hence, the analyst emphasized the need of surpassing the $61,000 resistance level to confirm a breakout. Moreover, stated that such a breakout could send the Bitcoin price to a new all-time high of $78,000.

Furthermore, analyst Michaël van de Poppe offered cautious optimism, acknowledging the potential for a retest of lows but highlighting positive momentum. However, he ended the analysis on a positive note, stating, “Good times are ahead.”

5. Cooling Economic Data

Recent economic data, including the Manufacturing Purchasing Managers’ Index (PMI), provides insights into broader trends. While the PMI fell slightly short of market expectations, indicating a marginal slowdown in manufacturing activity (49.2% versus the expected 49.9%), it still signals overall economic expansion.

Additionally, a hot labor market, as evidenced by steady job openings of 8.5 million in March, fuels optimism about the economy’s resilience. However, concerns over potential delays in Federal Reserve rate cut plans loom, highlighting the delicate balance between economic recovery and monetary policy.

Also Read: 23,000 Bitcoin Options Will Expire Today, Where Will BTC Price Swing Next?

The post Top 5 Reasons Why Bitcoin Price Recovery Is Confirmed appeared first on CoinGape.

Crypto Pulpit