- May 24, 2024
- Posted by: [email protected]
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Bitcoin (BTC) is currently grappling with significant resistance around the $70,000 mark. Starting the week on a bullish note, BTC managed to peak at $71,957, marking a substantial 13% gain over the past seven days. This recent surge has been largely fueled by significant inflows into Bitcoin spot ETFs and growing optimism about the potential approval of an Ethereum spot ETF by the SEC.
The success of U.S. Bitcoin spot ETFs has been particularly notable. BlackRock’s iShares Bitcoin Trust (IBIT) has captured a remarkable 94.86% of recent inflows, translating to $280 million out of a total of $305.7 million. As a result, IBIT now holds nearly 282,000 BTC, placing it in close competition with Grayscale’s Bitcoin Trust. Fidelity’s FBTC also experienced significant inflows, while other Bitcoin ETFs saw no activity. BlackRock’s IBIT has managed to attract 414 institutional investors, making it the fastest-growing ETF in the sector. This rapid growth underscores the increasing institutional interest and confidence in Bitcoin, which is likely to drive further demand and positively impact the broader cryptocurrency market.
In Hong Kong, Ethereum ETFs are also gaining significant traction. ChinaAMC’s ETF saw inflows surpassing 5 million HK dollars following a surge on Tuesday. Other prominent firms like Harvest Global, Bosera, and HashKey Capital have also reported higher trading volumes and price increases of over 18%. This regional success highlights a growing investor interest in Ethereum and other cryptocurrencies, further supported by the potential approval of spot Bitcoin ETFs by the SEC. As of Tuesday, net inflows for these ETFs had reached $306 million. Analysts have notably raised the approval probability for VanEck’s spot Ethereum ETF from 25% to 75%, reflecting increased optimism in the market.
Prominent analyst Kaleo predicts that the true bull cycle for cryptocurrencies is yet to begin, suggesting that Bitcoin is currently in an accumulation phase. He forecasts that Bitcoin could surge to between $150,000 and $200,000, while Ethereum might reach around $12,000. Such significant capital inflows are expected to ignite a frenzy in altcoins and decentralized applications, further boosting the overall cryptocurrency market. Despite Bitcoin’s recent drop to around $69,000 and Ethereum’s decline to $3,737, Kaleo remains optimistic about substantial future opportunities, indicating that the current market conditions might still offer attractive entry points for investors.
Currently, Bitcoin (BTC/USD) is trading at $69,563, up 0.65%, signaling a bullish price prediction. Technical analysis shows a pivot point at $68,944 on the 4-hour chart, with immediate resistance levels identified at $72,030, $73,734, and $75,480. Key support levels are at $67,549, $65,949, and $63,901. The Relative Strength Index (RSI) is at 55, indicating moderate momentum, and the 50-day Exponential Moving Average (EMA) at $67,532 supports a slight bullish bias. The fact that Bitcoin is trading above the $68,950 support level suggests a bullish outlook, with potential resistance around $71,000 and $72,000. Additionally, the formation of a doji candle followed by a bullish candle on the chart indicates exhaustion in selling pressure and the potential for upward movement. However, should Bitcoin break below the $68,950 support level, it could trigger a sharp selling trend.
The broader market sentiment and institutional participation are crucial factors to watch in the coming days. As institutional inflows continue and regulatory developments unfold, Bitcoin’s price action will likely reflect these influences. Investors should closely monitor these dynamics, as they will play a significant role in shaping the future trajectory of Bitcoin and the cryptocurrency market as a whole.
