Bitcoin breaks $78,000, signaling momentum traders' entry

Bitcoin has surged past $78,000, breaking a weeks-long trading range and signaling a key entry point for momentum traders. This upward movement coincides with improved risk appetite, partly influenced by geopolitical developments. On-chain data reveals that Bitcoin balances on centralized exchanges are at multi-year lows, suggesting investors are holding onto their assets, which could lead to a supply shortage and further price appreciation. While this breakout is a positive sign for continued upward momentum, some analysts advise caution due to persistent factors like oil prices and interest rate outlooks.