The value of Bitcoin has risen to around $24,000 as the demand for digital currency continues to grow. The latest report from the U.S.'s futures regulator showed that over a million addresses bought Bitcoin futures, which triggered a 5 percent rally. Many of the upward movement in the price occurred within the last three hours.
According to crypto analysts, the demand for Bitcoin is expected to push the price to around $27,000. This is because of the lack of resistance and the support level of the 50-EMA.
The number of open interest positions in Bitcoin futures has decreased from 14,957 to 12,849. This suggests that the final bias is bearish. However, the probability of entering the market on the current level is still higher.
Retail and main buyers are still optimistic about Bitcoin. There are 1,085 long positions and 627 short positions in the market, while giant buyers have 1,085 long positions and 748 quick positions.
The price of Bitcoin is currently above the $22,800 level, which is its 200-week moving average. According to the current data, the digital currency is trading at a stronger position against the various demand zones around $23,390 and $22,720. Almost 1.36 million addresses have bought more than a million Bitcoin to the market.
According to crypto investor Lark Davis, Bitcoin is expected to continue moving higher in the coming days as the price may test the $27,000 level. He noted that a bullish rally could occur if the price can break out of the current range.
The recent rally in the cryptocurrency market may have been short-lived as most altcoins are trading below the 50-MA, which suggests that a bear market has not ended. However, technical and macro factors are still expected to support the market's bullish trend.
What triggers Bitcoin's rally?
After avoiding a major breakdown during the previous week, the digital currency is currently trading at a stronger position against the dollar. It is expected to continue testing the resistance level of the 50-EMA in the coming weeks.
The upcoming U.S. inflation data is expected to cause a shift in the market's sentiment. Although sellers are still reluctant to allow Bitcoin to trade above $25,000, the macro factors could still support the bulls.
Bitcoin's weekly close on August 7 provided a sigh of relief to investors as it did not decline immediately following the candle. Instead, it started gaining and closed with an impressive hourly candle. This candle added almost $500 to the digital currency's value.
According to data from TradingView, Bitcoin's weekly close on August 7 was its highest since June. It also broke the previous weekly downtrend.
Bitcoin's price also defended its 200-week moving average during the week, which provided strong support to the bulls. Despite experiencing multiple failed attempts to break out of the current range, the digital currency managed to maintain its bullish trend.
The main macro events that are expected to influence the market in the coming days include the release of the U.S. consumer price index data on August 10. This data is expected to cause a shift in the market's sentiment.
The recent decline in the prices of commodities has been a key factor that has encouraged optimism among Tesla CEO Elon Musk. According to him, the decline in inflation would likely continue in the future.
During Tesla's annual meeting on August 7, Musk said that the recent decline in the prices of commodities could prove to be a sign that the consumer price index is past its peak.
The sentiment gauge of the market, which is known as the Crypto Fear & Greed Index, indicated that support is starting to build in the market. This zone, which was absent since mid-July, has been the main support for the bulls.