Following a turbulent period of six weeks starting in June, Bitcoin has made a comeback. Currently, the price is on an upward trend, surpassing $62,000.
Bitcoin Overcoming Challenges
Based on insights from CryptoQuant, an analyst suggests that Bitcoin is on the path to recovery. There is a possibility of further price increases in the upcoming weeks. Technically, Bitcoin is exhibiting a bullish breakout pattern, and a close above $60,000 is crucial for bolstering confidence.
During recent weeks, Bitcoin bulls have faced a barrage of negative news and uncertainty, including the German government’s decision to sell 50,000 BTC and Mt. Gox creditors announcing an earlier distribution of coins than expected in July.
The decline in Bitcoin prices from June to early July led to outflows in spot Bitcoin ETFs as some investors opted to redeem shares amidst the bearish sentiment caused by the US Federal Reserve’s decision to reduce rates only once instead of the anticipated three times.
Significant Reversal: BTC Trading Positively, Miners Optimistic
A notable shift occurred over the weekend when an analyst pointed out that an attempted attack on Donald Trump might increase the chances of his return to power, potentially impacting Bitcoin positively as Trump has shown support for crypto mining.
The surge in Bitcoin’s price is supported by increased liquidity, particularly in top stablecoins like USDT and USDC. Short-term holders are now in profit territory following the breach of the $62,700 mark.
Higher prices have led to improved profitability for miners, lifting them from being significantly underpaid. Consequently, fewer miners are inclined to sell their holdings.
Additionally, Coinbase users are willing to pay a premium for acquiring BTC, indicating growing momentum for further price gains, which is promising for buyers.
