Bitcoin’s price surged to $62,500, driven by whale accumulation and growing investor confidence. Positive regulatory developments and optimism around Bitcoin ETFs further fueled the rally.

Despite the surge, the market remains volatile, with short-term holders facing unrealized losses.

Traders are closely watching key levels as Bitcoin fluctuates, while the market cap has risen to $2.15 trillion.

Bitcoin Rebounds as Crypto Market Surges 11%

The crypto market surged 11% overnight, reaching $2.105 trillion, with Bitcoin climbing back above $62,000. This rise is driven by renewed investor confidence, as U.S. Bitcoin ETFs acquired 3,376 BTC.

Additionally, the increase in new daily Bitcoin addresses signals growing interest from individual investors, reversing a recent decline.

According to Glassnode, new addresses rose from 203,536 in early June to between 286,000 and 337,000 in August, suggesting potential market stabilization.

450 Bitcoin are mined daily.

Today, the U.S. Bitcoin ETFs purchased 3,376 BTC

That’s 7 days’ supply $IBIT $FBTC $ARKB $HODL $BTCW pic.twitter.com/8pVsqAFWFg

— HODL15Capital (@HODL15Capital) August 9, 2024

Analyst Benjamin Cowen warns of possible selling pressure if Bitcoin fails to maintain the $62,000 support level.

Meanwhile, Timothy Peterson notes that a “death cross” in moving averages might not be entirely bearish. Investors should closely monitor these support levels and emerging trends for future market insights.

Bitcoin Hits $62,500 on Strong US Jobs Data and Short Squeeze

Bitcoin surged to a week-to-date high of around $62,500 on August 8th, following better-than-expected U.S. labor market data. Jobless claims fell to 233,000, easing recession fears and boosting investor confidence. This positive economic outlook further reduced concerns about a potential downturn.

Additionally, a significant short squeeze in the crypto futures market, with over $114 million in shorts liquidated, further propelled Bitcoin’s price.

US Initial Jobless Claims 233,000 Vs. Expected 240,000, Prior 250,000 #MarketScreener https://t.co/cUep4MyNCy

— MarketScreener (@Marketscreener1) August 8, 2024

The U.S. report released on Thursday showed 233,000 initial jobless claims for the week ending August 3, beating the expected 240,000 and down from the previous week’s 249,000.

This stronger-than-expected result alleviated concerns about a potential economic slowdown, contributing to the crypto market’s rise.

Binance also saw substantial buy orders, adding momentum to the rally. However, some traders predict that Bitcoin might dip to around $60,000 before potentially retracing.

Overall, the combination of favorable job data and a significant short squeeze has driven a notable increase in Bitcoin’s price, though future movements remain uncertain.

Bitcoin Under Pressure: High Volatility and Record-Low Hashprice Raise Concerns

Bitcoin’s 30-day volatility has reached its highest level since March 2024, signaling increased market uncertainty and potential price fluctuations.

Additionally, Bitcoin’s hashprice—a critical measure of miner revenue—has hit a record low, sparking concerns about a profitability crisis for miners.

CRYPTO BREAKING NEWS
Bitcoin Volatility Soars to New Highs, Signals Market Shifts. IntoTheBlock reports Bitcoin’s 30-day volatility at its highest since March 2024, signaling potential market trend shifts. A recent spike in Bitcoin volatility highlights increased market… pic.twitter.com/1QMvuU0Ufw

— InnovatekMobile (@Neome_com) August 9, 2024

On August 8, Bitcoin’s hashprice dropped to $40 per unit, down from $60 during the 2022 crypto winter. Daily miner revenue also declined from $40 million in late July to around $24 million by August 7.

The rising network difficulty, now at a record high of 90 trillion, adds further challenges for miners.

The recent plunge in @Bitcoin‘s hashprice to a record low is raising fears of a potential miner crisis. With network difficulty up 10% and daily miner revenue halved, miners are feeling the squeeze. The hashprice has dropped to $40 per unit, even lower than during the 2022 crypto…

— VaaSBlock (@vaasblock) August 9, 2024

Smaller miners may struggle to cover costs, potentially leading to sell-offs that could exert downward pressure on Bitcoin prices.

This combination of high volatility and declining hashprice highlights the market’s current instability, presenting significant risks and opportunities for investors.

Bitcoin at $60,885 with Bullish Momentum; Key Levels to Watch

Bitcoin (BTC/USD) is currently priced at $60,885, marking a decrease of 0.48%. The 4-hour chart displays the cryptocurrency above its pivot point of $62,100, indicating potential bullish momentum.

Immediate resistance is noted at $64,645, with subsequent levels at $67,010 and $70,110. On the downside, immediate support lies at $59,360, followed by $57,150 and $54,610.

The Relative Strength Index (RSI) is at 61, suggesting a somewhat overbought condition, but not excessively so.

The 50-day Exponential Moving Average (EMA) at $59,370 provides additional support. A breach below $62,100 might trigger a sharp selling trend, altering the current positive outlook.

The post Bitcoin Surges to $62,500 on Strong US Jobs Data, Market Faces Volatility and Miner Challenges appeared first on Cryptonews.