This past weekend, Bitcoin (BTC) experienced an important rally, pushing its price above $63,000—an increase of 5.6% from the low hit below $60,000 on Friday. This unexpected attack occurred despite the lack of major news items, leading to speculation and speculation about the underlying causes. Here’s a deeper dive into three key factors that could explain this weekend’s price action.
#1 Bitcoin Whale Mysterious Activity
According to DeFi^2 (@DefiSquared), the leading broker in Bybit and the leading wallet in DeBank, a mysterious “whale” has been active in the Binance perpetual futures market. DeFi^2 noted significant buying activity from this organization, saying, “As local BTC dropped on Friday, almost all of the bounce this weekend came from one organization in Binance Perps who bought over $450 million in 500 blocks of BTC during the lowest hours of the market. “
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The DeFi^2 analysis prompted speculation about the whale’s possible strategies, especially considering the distribution of Mt. Gox is imminent, which could further impact Bitcoin’s buying and price stability. He also explained, “I want to know what the end game is before the Mt Gox distribution starts. With a position of this size, in order to exit they would need to drive the market high enough to short-term, or end up at a high risk of a cascade if the market goes against them. “
#2 Open Interest Build
Crypto trader Daan Crypto Trades (@DaanCrypto) provided details on how the futures market contributed to Bitcoin price movements. He focused on the relationship between open interest and market price, an important indicator of market sentiment and possible future volatility.
“Meanwhile, we have seen Open Interest rise with little short pressure and long interest taking hold. I think there are a lot of underwater shorts from the ~$60K range that should be pressed if the price were to continue to rise. That $65K region is still a huge area to watch out for,” Daan wrote.
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Interestingly, open interest in Bitcoin increased from $30.97 billion on Saturday to $32.21 billion on Monday, based on data from Coinglass. Despite this increase in open interest, the weekend did not see a significant short squeeze. The liquidation of only 35 million dollars in BTC shorts during this period was modest compared to previous events, such as May 20 when the price increase from $ 66,000 to $ 71,500 led to $ 84.2 million in short liquidation.
#3 Technological Disruption
Another contributing factor may have been the Bitcoin technology boom, which changed market momentum. Prominent crypto analyst CRG (@MacroCRG) described the weekend’s price action as “the beauty of a breakout.” He emphasized that both the stock prices and the basis of the perpetual futures remain low, which usually precedes strong market movements.
“That’s the beauty of breaking out. Funding + perps flat basis. Weekly close with 1H + weekly candle is a big pin with 8% weekly (high probability of candle reversal). Submit fully,” he said.
Technical analysis shows Bitcoin breaking the downtrend line that has been in place since it peaked around $72,000 in early June. A break in this trendline on Binance’s 4-hour chart, as noted by CRG, indicates a possible reversal from the recent bearish trend.
In addition, the weekly close of BTC reveals a significant signal—a large pin candle with an 8% streak—indicating bullish potential.
At press time, BTC traded at $63,232.
The featured image was created with DALL·E, a chart from TradingView.com
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