Why Bitcoin Price is Up Today
- The sudden spike in Bitcoin price led to more than 88 percent of short traders liquidating in the past 24 hours.
- Investors are confident in Bitcoin as a hedge against inflation.
- Market intelligence platform Santiment noted that crypto investors were returning to Bitcoin following the bleeding in the altcoin market.
First Republic Bank Report
The report of a significant decline in first-quarter deposits by First Republic Bank is a clear indication the United States banking system is slowly collapsing despite the Fed’s support. Moreover, more investors are becoming increasingly confident that Bitcoin serves as a hedge against inflation.
Social Dominance for Bitcoin on the Rise
As a globally traded and recognized digital asset, there could be several reasons why Bitcoin price edged higher on Wednesday despite the bearish outlook. Market intelligence platform Santiment noted that crypto investors were returning to Bitcoin following the bleeding in the altcoin market. Additionally, Santiment stated that discussions revolving around Bitcoin remain high and above average.
Bitcoin Price Action
The Bitcoin price is technically approaching a crucial resistance/support zone which could decide its trend over the next few weeks. On one hand, it appears that BTC is forming a head and shoulder formation on its daily time frame, which could lead to a significant capitulation shortly.