- Eric Trump’s BTC tweet drove a 1.49% surge, boosting volume on major exchanges.
- Bitcoin’s RSI hit 62.92, signaling a near-overbought market as MACD turned bullish.
- BTC remains in a 15% range since November, with analysts expecting a breakout soon.
Bitcoin experienced a surge in trading activity after Eric Trump posted a tweet stating that it was the right time to enter Bitcoin. Within a short time, the tweet garnered attention among Bitcoiners, resulting in a price jump of 1.49%. Also, the trading volumes spiked 15%, reaching 2.3 million BTC on major exchanges like Binance and Coinbase.
The on-chain data reflected strong market engagement and the Bitcoin network experienced a 5% increase in its active addresses. Compared to last day’s levels, the transaction volume surged a 10% increase. Technical indicators pointed out that the market is approaching an overbought phase. While Bitcoin’s RSI reached 62.92, the Moving Average Convergence Divergence indicator produced a bullish trend shift.
Following Eric Trump’s tweet, analysts noted Bitcoin’s correlation with macroeconomic conditions. Since mid-November, Bitcoin has been trading within a 15% price range while historical trends suggested a potential breakout within 80 to 90 days.
Meanwhile, recent global events have influenced Bitcoin’s movement to a great extent. Although the US government adopted a pro-crypto stance, Trump’s recent trade tariffs on Canada, Mexico, and China triggered a major liquidation in the market, On February 3, over $2.24 billion was liquidated from crypto markets. Bitcoin briefly dipped below $100,000, falling to $92,584 before rebounding to $97,370. Some analysts speculated that another price scare is possible.
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Open interest in Bitcoin futures also increased across various exchanges. Funding rates for perpetual swaps turned positive, indicating bullish sentiment. Liquidity also improved for BTC/USDT and BTC/ETH trading pairs.
Market watchers anticipate a decisive price move in the coming weeks. Some believe Bitcoin has yet to fully react to policy shifts. Despite recent volatility, Bitcoin has held above its pre-election price. Analysts are monitoring for another potential shake-up.
