Bitcoin is defying all expectations at the time of writing. It peaked at $77,500 a few minutes ago, trading up by over 3% on Friday.
The asset found its spark as the bulls resumed massive accumulations following fresh fundamentals. Iran announced the reopening of the Strait of Hormuz after several weeks of closure. Dialogue is currently yielding results, and investors are thrilled at the prospect of normalcy.
However, the Islamic Republic did state the reopening may be temporary, lasting only the remainder of the ceasefire. Nonetheless, the thrill has since sent Bitcoin to its highest value since February.
The apex coin has mostly been rising over the last five days. It is also aiming to achieve its best weekly performance this month.
In hindsight, the asset saw a flurry of fundamentals this week. The US BLS released economic data as expected, and all of it came out positive. The reduction in inflation has given investors more reasons to flood the market with liquidity.
Interestingly, a few days ago, the correlation between NASDAQ and Bitcoin tightened after several weeks of trading almost independently. However, the current price trajectory suggests that BTC will surge even higher in the coming hours.
Bitcoin Aims at $80k
Bitcoin saw a slight pullback after hitting $77.5k. It maintains trading above $77k amid the spike in selling pressure. However, previous price movement indicates an attempt at $80k is next.
BTC tested $80,000 in February, but failed due to significant selling congestion at $79,300. A closer look at the 1-day chart revealed that it tested it three times in a row and failed each time. Between $76k and $80k, there are no strong levels except the highlighted one. This means there is an increased chance of resistance attempts.
However, the Fibonacci retracement level suggests that the move to the barrier lacks confirmation. Bitcoin is currently trading between the 50% and 38% levels. The apex coin must flip the 50%, which is at $77,650. It will confirm the surge to $80k.
Interestingly, flipping the 50% mark will increase the likelihood of an attempt at the 61% fib level. The indicator suggests that a surge to $81k is likely in the coming days.
Aside from the fibonacci retracement levels, the moving average convergence divergence is also positive. Since it had a bullish crossover a few days ago, it has maintained its upward trajectory.
Nonetheless, onchain data shows notable buying pressure at the time of writing. When Bitcoin first surged $76k, the short-term holders stuffed out the buying pressure by dumping a whopping 65k BTC. As a result, the asset saw a slight retracement.
However, data from CryptoQuant shows that exchanges are seeing lower inflows at the time of writing. Although incomplete, current data show an inflow of over 8k units compared to over 10k units leaving exchanges.
Nonetheless, amid the current uptrend, data from Coinglass shows massive liquidations trailing the recent hike. Over the last 12 hours, traders lost over $600 million, with the bears accounting for more than $500 million. Interestingly, a bulk of the rekt capitals occurred over the last 4 hours.
It is also worth noting that Bitcoin is at a level with a sparse liquidation cluster. However, shorts are currently piling at $78,250.
