Bitcoin Nears $63K as Bulls Chew Through ‘Taker Selling’

As a researcher examining the latest cryptocurrency market trends, I’ve discovered that Bitcoin, the dominant digital currency by market capitalization, experienced a 2% increase and is now valued at approximately $62,800. This growth largely counterbalances Tuesday’s downturn.

Based on information from data monitoring tool The Kingfisher, it was identified that the surge in buying orders originated from the Nasdaq-linked Coinbase exchange and Bitfinex. These exchanges played a significant role in balancing out the ‘taker selling’ activity observed on Binance. A taker order signifies a trade request where the trader intends to execute the transaction instantly at the current market price.

The difference in accumulated trading volume between Coinbase and Bitfinex has grown, signaling a rise in overall buying activity. Conversely, the volume difference on Binance has remained constant, suggesting persistent selling.

As a market analyst, I would describe CVD (Composite Volume Delta) as follows: CVD represents the variation between the total buying and selling volumes in financial markets. It helps identify which party, be it buyers or sellers, held the dominant position during a given period. This metric takes into account transactions involving USD or its equivalents as quote currencies, encompassing both traditional fiat currencies and stablecoins pegged to the dollar.

“According to pseudonymous analyst Skew, Binance’s Spot market still has sellers active, but these sales are currently being offset by passive buyers. Meanwhile, Coinbase’s Spot market is experiencing renewed buying interest as batches of coins are being purchased.”

Traders in established markets persistently exchange the U.S. dollar for significant currencies, which in turn strengthens the value of riskier assets like cryptocurrencies.

Based on TradingView’s data, the dollar index decreased by 0.17%, reaching a level of 104.84. This downward trend indicates that the greenback’s exchange rate against the basket of fiat currencies is continuing to drop from its peak of 106.49 on May 1st.

After Federal Reserve Chair Jerome Powell’s remarks, it became clear that the existing monetary policy is considered restrictive by various standards. It seems unlikely for the Fed to implement another interest rate increase or further tightening of liquidity in the near future.

As a crypto investor, I took note of Powell’s reassuring remarks regarding the unexpectedly high U.S. April producer price index. Despite this figure suggesting an increase in inflation on the horizon, Powell seemed to dismiss its significance.

“Powell referred to the wholesale inflation figures as not strictly hot, but rather a combination of both hot and cool elements.”

The Consumer Price Index (CPI) from the Labor Department is due for release on Wednesday at 12:30 UTC. If this index comes in lower than anticipated, cryptocurrency experts believe Bitcoin‘s price may surpass $65,000.

As a researcher, I’ve found that the general agreement is that the Consumer Price Index (CPI) grew by 3.4% compared to the previous year in April. This represents a slight decrease from the 3.5% increase observed in March. Regarding the core CPI, which takes into account the fluctuations of food and energy prices, it registered a year-on-year increase of 3.6%, down from the 3.8% rise reported in March.