As the crypto market continues to gain momentum, the price of Bitcoin has risen above $66,000.
Bitcoin soared above $3,000 in four hours on July 19 as a new wave of volatility boosted the crypto market.
Data from Cointelegraph Markets Pro and TradingView showed a nightmare for short traders at the start of the weekend of July 19, when BTC/USD suddenly rose from $63,303 to $66,506.
At the time of publication, the BTC/USD pair was still gaining ground after hitting a high of $66,773 on Bitstamp.
“A new short-term high for #Bitcoin means that the recent highs and lows (upward behavior) are intact,” wrote independent Caleb Franzen, reacting to Bitcoin (BTC)'s sudden rally over the past few hours.
“This was constructive price action, with key definitions above structural and dynamic levels. Bulls are getting a tight grip on prices.
This week's sell-off weakness and a move below $65,000 following the failed assassination attempt on US President Donald Trump has caught the attention of day traders.
They played on the continuation of the correction. On July 19, 2011, they suffered a major loss, with today's rally liquidating $40.83 million worth of short positions in four hours, wiping out a total of $131.65 million in the 24-hour period.
CoinGlass's Bitcoin Liquidity Heatmap shows that BTC has pushed over-asking levels of $83.38 million at the time of publication, risking short-term liquidity, with asking orders between $66,880 and $67,000.
Related: Bitcoin Bulls Charge to $66K as BTC Price Hits New 1-Month High
Bitcoin retail demand at three-year low
Michael van de Pop, founder of MN Capital, sees retail demand for bitcoin at a three-year low, which he says reflects current market sentiment.
A consistent flow into Bitcoin investment products, including spot-traded funds on Bitcoin exchanges, suggests that demand for BTC is largely coming from institutional investors.
Van de Pop shared a CryptoQuant chart showing Bitcoin's declining retail demand. This indicator says that it is time for Bitcoin to “turn around”.
Market analysts say that Bitcoin's bull run is often driven by retail investors, who have yet to return to the market.
CryptoQuant author Woominyu wrote in a July 17 post, “The real bull run starts with a high volume of buying led by retail investors.
“And we haven't seen this amount from retail investors yet.”
After BTC went into parabolic growth, the long-term picture remains more than positive, with analysts predicting Bitcoin price to exceed $200,000.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
