Decisively Bullish’ Bitcoin Breaks Into A New 6-Week High, Rising Above $7,750
In a sudden and strong move today, the world’s leading digital asset surged as high as $7,756 on Bitstamp. Currently, BTC/USD is trading above $7,500, up 2.55% YTD. Following bitcoin, altcoins surge higher as well, with Stellar in the lead with nearly 18% gains. DigiByte (14.60%), Cardano (9.31%), Tezos (8.13%), and Engine Coin (7.11%) also recorded significant gains.
Tuesday morning stock markets also extended gains with S&P 500 up 1.34% and Dow rose 1.42% only to pare after a hopeful coronavirus treatment from Gilead (GILD) failed in a trial.
The most exciting thing about Bitcoin's move today is that we will finally stop hearing arguments about how it is correlated with the stock market. https://t.co/OslVNsAzhn
— The Wolf Of All Streets (@scottmelker) April 23, 2020
Today, the Labor Department also reported that the number of Americans applying for state unemployment totaled 4.4 million last week, bringing the total tally over the last five weeks at 26.45 million, far exceeding the 22.442 million jobs added to payrolls since November 2009, when the US economy began to add back jobs after the recession.
Gold also went up 1.06% to $1,756.80 per ounce.
— Ceteris Paribus (@ceterispar1bus) April 23, 2020
Most Buy Liquidated in a Month
Now, today as the price of bitcoin went up to the level just before the March 12 crash, shorts got heavily liquidated. As a matter of fact, BitMEX XBT/USD had the most buy liquidations in a month as the Bitcoin price went through $7,500.
XBTUSD just had the most buy liquidations in a months as BTC went through 7.5k pic.twitter.com/yB3V3QVa9f
— skew (@skewdotcom) April 23, 2020
The popular derivatives exchange which lost some of its market share to Binance since Black Thursday also has its Bitcoin balance down nearly 32% since the March top. But now that bitcoin has broken up to a new six-week high ahead of halving, the market is getting excited.
According to trader Josh Rager, “$7373 is still the level to close above on higher time frames to lead to more upside.” Neutral at the moment, Rager said,
“currently stuck under the Point of control (price with highest volume) over the past 6 months. A lower-high would form if Bitcoin doesn't close above the POC at $7177.”
$BTC pushed to a major level that held as support/resistance since last year
$7800 tapped with over 11% gains past 24 hours
Not looking to short here, Bitcoin and stocks both look good, a daily close above $7400 would be higher high and likely bullish continuation pic.twitter.com/jw2t46s8v3
— Josh Rager 📈 (@Josh_Rager) April 23, 2020
Meanwhile, trader Crypto ISO says,
“BTC reclaiming the 50 MA was a good signal. SPX en route to do the same. 61.8 fib on BTC is the barrier for now. SPX likely tests it and maybe 200 MA. 200 MA's untouched. Equities seem strong. Will be looking for sustained pos funding, green delta, 70.5 fib. 84-8500.”
— f i l ₿ f i l ₿ (@filbfilb) April 23, 2020
“Unlimited QE” Everyone
Keeping the price movement aside, there are various reasons to be bullish about the crypto market. With the number of addresses holding Bitcoin for over a year at their all-time high, long-term investors accumulating BTC, and new money flowing in stablecoins, the market is seeing constant growth.
Also, Weiss Cryptocurrency Rating shares its “decisively bullish” long-term outlook because of a favorable risk/reward ratio, the Federal Reserve creating a new surge in demand for crypto assets by printing fiat money at the fastest pace in history and supply shock coming in Bitcoin.
After the US, today, the Bank of Japan also announced “unlimited QE” and doubled its corporate bond purchases while maintaining a negative rate at -0.1%.
While the central banks are printing money to inject liquidity into the market, announce stimulus measures, and bailouts to fight the fallout from the coronavirus pandemic, millions of Americans are still struggling to pay rent and buy groceries but the wealth of billionaires only surged to “new heights.”
A latest report found that American billionaires actually got $280 billion richer since the start of the COVID-19 pandemic while millions are getting out of work.
This disparity amidst the macro backdrop of coronavirus, negative interest rates, money printing, banks using the average American’s stimulus money to pay off debt are all working in favor of the unseizable hard asset Bitcoin.