Bitcoin (BTC) has crossed the $61,000 mark, reaching a peak of $61,200 before settling at a current price of $60,503. The cryptocurrency has witnessed a significant 6.2% increase in the past 24 hours, an 18.3% rise over the week, and an impressive 158% surge over the past year.
This rally is largely driven by a surge in institutional interest, following the approval of 11 Bitcoin ETFs in the United States, and the anticipation of the upcoming Bitcoin halving event set for April.
The Bitcoin halving, a mechanism that reduces mining rewards by half, is known to precipitate substantial bull runs by slashing the rate at which new bitcoins are created, thereby reducing supply inflation by 50%. This event, coupled with the burgeoning institutional interest, has set the stage for Bitcoin’s current rally.
Technical analysis further supports the bullish sentiment with several indicators pointing towards strong momentum. The Relative Strength Index (RSI) is at an overbought level of 86/100, suggesting a dominant buying pressure.
Meanwhile, the Average Directional Index (ADX) stands at 39, signaling a strong upward trend. The widening gap between the 10- and 55-day exponential moving averages (EMA10 and EMA55) also indicates an accelerating upward price movement.
The market’s sentiment mirrors this optimism. The Crypto Fear and Greed Index, which gauges the crypto market’s sentiment, is currently in a phase of “extreme greed” with a score of 82, marking a significant shift in trader confidence and bullish sentiment since June 2022.
This is in stark contrast to the Fear and Greed Index for the S&P 500, which has also been in “extreme greed” territory, driven by excitement around AI stocks.
The bullish trend is reflected across the crypto market, with the total market capitalization increasing by $1 billion in the last 24 hours to $2.3 trillion. PEPE leads the gains with a 41% increase, while BitTensor (TAO) experienced the most significant drop at -3%.
