- May 23, 2024
- Posted by: [email protected]
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Bitcoin (BTC) recently underwent a decline, slipping below the notable $70,000 threshold to approximately $69,229, with an intra-day low of $69,939. This downturn is largely attributed to diminished investor demand, influenced by uncertainties surrounding the anticipated Federal Reserve rate hike scheduled for September. Furthermore, recent data concerning ETF flows indicates a mixed sentiment, with net inflows notably decreasing to $15.7 million. This cautious investor sentiment may also be affected by the pending approval of a US ETH-spot ETF, potentially impacting Bitcoin’s short-term performance.
Geoff Kendrick, Head of FX and Digital Assets Research at Standard Chartered Bank, provides an optimistic outlook for Bitcoin. Kendrick predicts that Bitcoin could exceed its previous peak of $73,798 by the weekend. He attributes this potential upsurge to the anticipated approval of spot Ether ETFs, which he believes will bolster Bitcoin’s credibility and performance. Expanding on his positive forecast, Kendrick projects Bitcoin to potentially reach $150,000 by the conclusion of 2024 and $200,000 by the end of 2025. These projections are supported by recent substantial inflows into spot Bitcoin ETFs, totaling $12.9 billion.
BlackRock’s spot Bitcoin ETF made a significant impact on the US market on May 21, capturing 95% of the $300 million inflow, with $290 million directed towards the iShares Bitcoin Trust. This surge represents the highest level of inflows observed since April 5, effectively reversing the preceding trend of low inflows. Over the past four days, funds flowing into spot Bitcoin ETFs have surpassed $1 billion amidst Bitcoin’s volatile rally. With BlackRock’s fund accumulating a total of $16 billion in inflows since its launch, it is progressively nearing the $20 billion benchmark set by Grayscale.
These notable inflows into Bitcoin ETFs, along with the anticipation surrounding the potential approval of Ethereum ETFs, have reignited investor interest in Bitcoin ETFs, contributing to the recent surge in Bitcoin’s price. At present, Bitcoin (BTC/USD) is trading at $69,675, indicating minimal change with a -0.03% movement, implying a positive outlook. Key price levels have been identified for traders to closely monitor, with the pivot point at $69,675 serving as a crucial benchmark. Immediate resistance levels are observed at $70,560, $71,944, and $73,300, suggesting potential upward targets if bullish momentum persists. Conversely, support levels are identified at $68,990, $68,260, and $67,265, offering a safety net against further price declines. The Relative Strength Index (RSI) currently stands at 57, indicating neutral market momentum, while the 50-day Exponential Moving Average (EMA) is positioned at $68,375, suggesting the possibility of an uptrend continuation above $70,000. Additionally, the presence of an upward trendline reinforces this optimistic outlook. Nonetheless, a breach below the pivot point of $69,675 could potentially trigger a sharp selling trend.
While Bitcoin’s current outlook remains positive at $69,675, any breach below this level could potentially exert significant downward pressure in the near future.
