Bitcoin has ended July’s first week with an impressive upswing as enhanced market conditions catalyzed increased accumulation. The bullish moves led to a substantial upsurge that propelled the bellwether crypto beyond $22K early on July 6.
Moreover, Bitcoin climbed to the $22,527 high on July 6. Remember that BTC has never crossed back beyond $22K since mid-June. The token recorded an upside move due to the massive demand within the marketplace this week. Moreover, the surge was steady enough to propel the crypto out of a short-term wedge setup that housed Bitcoin since June.
Bitcoin witnessed a massive buying momentum during July 7 trading session following a break past a descending resistance level. Nevertheless, it since retraced towards $21,516 at this publication, following magnified selling strength when the 4-hour RSI (Relative Strength Index) dipped into the overbought territory. The MFI (Money Flow Index) recorded some outflows within the previous 24 hours.
Shorts Liquidation Might Have Triggered the Upswing
The latest BTC upsurge didn’t result from standout developments/announcements. Nevertheless, analyzing the asset’s metrics shows market players liquidated a substantial number of leveraged shorts. Glassnode’s shorts liquidation index confirms a swift surge in liquidations to $29.42M from $10.23M from July 6 to 7.
These liquidations might have offered an additional bullish momentum that propelled BTC beyond $22K. Also, exchange outflows exceeding inflows within the past few days backed the uptrend. Exchange outflows increased from 20,495 $BTC against 18,648 $BTC inflows on July 3. Meanwhile, July 7 sessions saw 50,966 $BTC in exchange outflows against 43,601 $BTC in inflows.
Exchange outflows exceeding inflows led to increased buying momentum for the crypto. Meanwhile, most of the volume emerged from the retail sector due to limited whale action. Moreover, the whale supply metric (addresses with over $5M in BTC) recorded a substantial drop since July 4. That means the cohort has been reducing balances when prices surged higher.
The lower whale supply as prices surge indicates that the recent rally could be limited. Nevertheless, increased whale balances and transactions around current value areas might offer another upside boost.