Bitcoin and Ethereum experience a surprising surge, driven by a peaceful geopolitical environment and promising economic data. What factors are behind this rebound ? Here's an analysis of trends and key levels for investors to monitor.
After a period of relative stability, Bitcoin has kicked off the week with a bang. The leading cryptocurrency gained nearly 1% in a single day, reaching $119,300. Meanwhile, Ethereum advanced by 3%, climbing to $3,900. This sudden price surge has raised numerous questions among investors.
Several factors explain this unexpected upswing. First, concerns about the trade war led by Donald Trump are gradually easing. After concluding an agreement with Japan, the United States has also received positive news from the European Union in recent hours.
Within the EU, the proposed tariffs on American products should ultimately be limited to 15%. Additionally, the American president is expected to visit China soon for potential new negotiations. This easing of trade tensions is breathing new optimism into the markets, including cryptocurrencies.
Moreover, the coming days will be marked by a significant flow of economic data, beginning with quarterly updates from the US Treasury on public deficit financing. Investors will closely monitor employment figures, growth rates, and inflation data, which could fuel the upward momentum.
While crypto market volatility was at its lowest this year, the situation could change in the coming days. The numerous economic publications expected this week are likely to impact prices significantly, in either direction.
But the data points more toward a medium-term rise than the opposite. Indeed, $2.48 billion are to be liquidated up to $131,000. Although a CME gap needs to be filled between $118,000 and $117,000, liquidity for Bitcoin is positioned to the upside. This liquidity should be captured in the coming weeks.
However, with numerous announcements on the horizon, Bitcoin might still struggle to break through the $120,000-$125,000 range this week. In case of a drop, the support at $115,000-$114,000 must hold. Trader Killa reminds us that it previously took one month to liquidate the $114,000-$116,000 level.
On the on-chain side, the STH SOPR indicates strong capitulation and panic selling at a loss by investors. This provides bullish confluence for an imminent rebound rather than a deeper fall.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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