Key Reason Behind Bitcoin Reaching $63,000: Insights from U.Today

Bitcoin, the leading cryptocurrency by market capitalization, has experienced its most significant rise in nearly two months, reaching $63,000 after a weekend of strong bullish activity. This marks Bitcoin’s fourth consecutive day of gains following its rebound from last Friday’s lows of $56,538.

The cryptocurrency had reached a peak of around $74,000 in mid-March, driven by demand for newly launched U.S. exchange-traded funds. However, it subsequently declined due to reduced inflows and concerns regarding the sales of seized tokens as well as issues surrounding the bankrupt Mt. Gox exchange.

After a downturn that saw the price drop to $53,499 on July 5—levels not seen since February—Bitcoin began a recovery after several days of consolidation.

From a technical standpoint, Bitcoin’s recent price rise has been supported by a significant breakout, with the asset surpassing the crucial 200-day Simple Moving Average (SMA). This breakout has energized buyers further, pushing the price up. Analyst Ali Martinez noted that breaking above this level was essential for maintaining Bitcoin’s bullish momentum.

In a previous analysis, Martinez suggested that a successful breach of the $59,200 resistance level, which aligns with the daily SMA 200, could see Bitcoin rise to $63,800.

At the time of writing, Bitcoin was up 4.12% over the past 24 hours, trading at $62,745 after reaching intraday highs of $63,293.

### Broader Crypto Market Rally

Bitcoin’s price surge is part of a larger rally across the cryptocurrency market, with other significant cryptocurrencies also experiencing notable gains, fostering positive market sentiment. Recent data indicates that $125 million worth of positions have been liquidated in the last 24 hours, predominantly affecting bearish traders who anticipated further declines in crypto prices, with $101.43 million representing these bearish bets.

Bitcoin made up nearly half of this liquidation total, as shorts in BTC lost $49.45 million. On-chain analytics from IntoTheBlock suggests that although Bitcoin has regained the $62,000 support level, strong resistance remains above it. Nonetheless, sufficient bullish momentum may help mitigate selling pressure.