Bitcoin Price Hits $61k as Marathon Digital Invests $250M

Bitcoin Price Analysis:

Bitcoin price rose as high as $61,000 on Aug 13, 2024, up 6% within the 24-hour timeframe, technical indicators suggest traction gained Marathon Digital’s $250 million investment could propel BTC further upwards.

BTC Surges 6.8% as Marathon Digital Announces $250M Investment

On August 12, Marathon Digital Holdings (NASDAQ: MARA), one of the world’s largest Bitcoin mining firms, announced its plans to privately offer $250 million in convertible senior notes due 2031. This offering, which will be made to qualified institutional buyers under Rule 144A of the Securities Act of 1933, is subject to market conditions and other factors.

The proposed notes will be unsecured senior obligations of Marathon Digital (NASDAQ: MARA) and will bear interest payable semi-annually, starting 1 March 2025, with the notes set to mature on 1 September 2031.

Based on regulatory filings the company intends to use the proceeds from this offering primarily to purchase additional Bitcoin.

As expected, Bitcoin traders have reacted positively to this news event. Within the 24-hours of the news, BTC price raced into a 6.8% rally towards $61,590 on Aug 13.

Importantly, Marathon Digital has also included an option for the initial purchasers to acquire an additional $37.5 million in notes within a 13-day period from the initial issuance date.

Hence, traders anticipate that BTC could experience a significant demand surge in the coming weeks.

Traders Mount $2.3B LONG Positions after Breaking $60k Resistance

More the bullish sentiment surrounding Grayscale’s impending $250 million investment has spread across to the speculative markets. Derivatives trading data shows more aggressive trading among Bitcoin investors following the announcement.

Coinglass’s Liquidation map chart below, compares the active leveraged LONG contracts to active SHORT positions. This provides real time insights into investors’ reaction towards certain market events.

Looking at the chart above, BTC traders have now mounted $2.33 billion LONG contracts around the 20% boundaries of the current prices. Meanwhile the bears only have $980 million leverage positions SHORT active.

When leverage LONG contracts become dominant in a market, it suggests  improvement in market sentiment. And with LONG contracts exceeding SHORT by over $1.4 billion, bulls now appear firmly in control of the BTC short-term market momentum.

If strategic prospective new entrants on the sidelines take this as a signal to enter the fray, BTC price could now edge towards the $65,000 in the days ahead.

BTC Price Forecast: $65k Retest on the Horizon

Bitcoin’s recent price action indicates a potential bullish continuation, supported by favorable technical indicators. The Keltner Channels (KC) show Bitcoin trading near the middle line, with resistance at $67,667 and support at $54,336.

The fact that Bitcoin has risen above the middle KC line suggests the possibility of further upside, with the $67,667 level serving as the next major long-term resistance target.

Moreover, the Bull-Bear Power (BBP) indicator is showing a reading of -665.38, which, although still negative, is an improvement over recent days. This upward movement in the BBP suggests that bulls are gaining strength, potentially leading to increased buying pressure in the coming sessions.

If Bitcoin manages to close above the $61,001 resistance level, it could signal a renewed push towards the $67,667 resistance zone. A successful break above this level could pave the way for a retest of the $65,000 psychological barrier, a critical level that could attract more buyers and accelerate the bullish momentum.

In summary, while caution is warranted, the technical indicators point to a bullish outlook for Bitcoin in the short term. Traders should monitor the $61,001 resistance closely, as a breakout above this level could lead to a rapid ascent towards $65,000 and possibly higher.