- May 20, 2024
- Posted by: [email protected]
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Bitcoin is on the verge of potentially reaching new all-time highs (ATHs) if it can surpass the pivotal $67,500 resistance level. Markus Thielen, head of research at 10x Research, asserts that breaking this threshold could trigger a significant bullish rally. This sentiment follows Bitcoin’s recent recovery above the psychological level of $66,000, which is seen as a positive indicator for its price action. Over the past week, Bitcoin has experienced growth of more than 7.3%, reflecting renewed investor confidence.
Thielen emphasizes that overcoming the $67,500 barrier could drive Bitcoin to unprecedented heights, validating the projections of their Bitcoin ETF model. In the United States, spot Bitcoin exchange-traded funds (ETFs) have enjoyed positive inflows for two consecutive weeks. These ETFs have amassed a net inflow of over $200 million, though this is a reduction compared to the previous week’s $413 million. Before the week starting May 6, Bitcoin ETF net flows had suffered three consecutive weeks of outflows, indicating fluctuating investor sentiment.
Institutional inflows through ETFs have been instrumental in Bitcoin’s recent rally. By February 15, Bitcoin ETFs accounted for roughly 75% of new investments in the world’s largest cryptocurrency, propelling it past the $50,000 mark. However, Bitcoin faces formidable resistance at the $67,500 level. Should it break through, nearly $300 million worth of leveraged short positions across various crypto exchanges could be liquidated, according to CoinGlass. This potential liquidation could further fuel Bitcoin’s upward momentum.
The monthly chart analysis reveals that Bitcoin has successfully converted a significant resistance level into support, suggesting an increase in bullish momentum. Popular crypto analyst Rekt Capital highlighted this development in a post on May 16. This shift from resistance to support is crucial, as it often precedes further upward movement.
Other analysts have also turned bullish on Bitcoin after weeks of consolidation. Leading trading firm QCP Capital is optimistic about Bitcoin’s price trajectory, forecasting a potential rise to the highs of $74,000. In a recent note, QCP Capital reported observing substantial buyers acquiring 100,000 to 120,000 BTC calls for December 2024, signaling strong confidence in Bitcoin’s upward trend. The firm noted, “US CPI numbers triggered a breakout across risk assets, with BTC trading back above 66k.”
However, Michael Novogratz, founder of Galaxy Digital Holdings, expects Bitcoin to remain within a relatively narrow trading range in the current quarter, between approximately $55,000 and $75,000. He anticipates that specific market events or conditions will be necessary to push prices significantly higher. Novogratz referenced the favorable market conditions experienced in the fourth quarter of the previous year and the first quarter of this year as contributing factors to the current trading range.
Bitcoin’s journey to potentially new ATHs is closely watched by investors and analysts alike. The convergence of positive institutional inflows, strategic resistance levels, and favorable market conditions could pave the way for significant price movements. As the cryptocurrency market remains dynamic and influenced by a myriad of factors, the potential for Bitcoin to break new ground continues to capture widespread attention.
