Bitcoin hit $85,000 for the first time since January as markets focused on cooling oil prices.
Bitcoin (BTC) starts a new week at its highest levels in nearly eight months as bulls propel the market to $85,000.
Bitcoin is facing a key breakout at the time of writing as it hits $85,000 and sets new 33-week highs. Data from TradingView shows BTC/USD advancing after setting a weekly close of $81,120 on Sunday, its highest since the week of May 4.
BTC/USD one-week chart. Source: Cointelegraph/TradingView
Crypto short liquidations spiked as a result, with CoinGlass putting the cross-crypto 24-hour total at over $600 million.
Crypto liquidation history (screenshot). Source: CoinGlass
The latest move higher has implications for the views of many market participants on whether price will hold above the prior local high of $82,950 from May. Last week, trader and analyst Rekt Capital described Bitcoin as facing a “moment of truth” as it coiled up below this level.
BTC/USD one-week chart. Source: Rekt Capital on X.com
Rekt Capital warned that a bearish divergence was playing out on the relative strength index (RSI) indicator on daily time frames, where lower highs for the indicator came with higher highs for price. He stated that this indicates a lack of underlying momentum to support the highs, increasing the risk of a sudden reversal.
With the return to $84,000, the daily RSI is approaching “overbought” territory at 70 at the time of writing. Bitcoin has reclaimed its 50-week exponential moving average (EMA) at $77,769, previously marked as a key prerequisite for upside continuation.
BTC/USD one-day chart with 50-week EMA; RSI data. Source: Cointelegraph/TradingView
Various investor cohorts also returned to aggregate profit, including Bitcoin corporate treasuries, holdings of which have a cost basis of around $80,500. Now, price is approaching its cost basis for investors in US spot Bitcoin exchange-traded funds (ETFs). Per data by onchain analytics platform Glassnode, this cost basis currently sits at $85,638.
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
