Bitcoin Nears $67,000 Mark Again, Showing Promise of Breaking Past and Present Highs
Summary:
Bitcoin (BTC) shows promising signs of reaching resistance levels set at its previous and current all-time highs of $69,000 and $73,800, as it nears the $67,000 mark again. Indicators like US economic policy, upcoming Fed minutes, increasing trader confidence, and intriguingly low market sentiment suggest a bullish continuation. There are also predictions of altcoins exceeding Bitcoin's performance during this phase. Furthermore, the Federal Reserve's upcoming high-ranking official speeches are expected to shift focus from US economic reports. Simultaneously, there are positive signs in market sentiment, with the Crypto Fear & Greed Index indicating controlled greed levels despite BTC's recent price hike.
This week sees Bitcoin (BTC) regaining strength as it nears the $67,000 mark and shows promise of approaching resistance levels around its previous and current all-time highs, set at $69,000 and $73,800. The probabilities of attaining these targets will be a dominant concern for investors, with factors such as United States economic policy cues playing a key role. Indicators like US unemployment data, the forthcoming Fed meeting minutes, and increasing trader confidence also suggest a bullish continuation. Interestingly, there appears to be a divergence in play, with Bitcoin prices climbing but market sentiment lagging behind the March peak.
Bitcoin indeed seems in good form this week, with prices nearing $67,000, despite short-lived geopolitical concerns related to Iran. The foremost cryptocurrency successfully maintained its 10% May gains. CoinGlass, the monitoring powerhouse, shows most immediate overhead resistance is slightly shy of $68,000.
Positive sentiments are building around the recent Bitcoin performance. One example is popular trader, Crypto Damus, who praised the weekly closure of Bitcoin. Another is Michaël van de Poppe, leader of trading enterprise MNTrading, who predicts a steady climb towards Bitcoin's all-time highs. He also forecasts altcoins to outperform during this phase with an expectation of vertical movement acceleration towards Q3/Q4. However, some traders like Credible Crypto have forecasted Bitcoin will drop to $60,000 or maybe lower.
Moving onto the macroeconomic landscape, the coming days might not witness a total dominance of US economic reports as seen previously. Instead, the Federal Reserve could attract more attention with its host of high-ranking official speeches. The May meeting minutes, where interest rates were discussed, will be released on May 22.
The steady flow of the US and international liquidity into markets is also gaining attention. Financial commentator Tedtalksmacro indicates that the crypto bull run is far from over. He further points out that the Bitcoin ETFs have seen a resurgence in interest, marking their best performance since Bitcoin's March all-time high, with almost $1 billion inflow.
Bitcoin’s supply block is also half of what it was compared to March, and increased inflows lead to the purchase of much more Bitcoin than miners can supply daily. As reported by Thomas Fahrer, CEO of crypto reviews portal, Apollo, Bitcoin ETFs alone now hold around 2.8% of the entire BTC supply.
In terms of Bitcoin demand, there is continued bullish expectation as major trading platforms report the lowest available Bitcoin for purchase since 2017.
Finally, a potential good news for immediate market sentiment could be the Crypto Fear & Greed Index. Despite the current BTC price hike, the Index, which gauges the sustainability of overall crypto sentiment, stands at 70/100, a greed level far from the extreme levels seen during the record highs in March. However, FOMO needs to be kept in check for the positive trend to continue.
Published At
5/20/2024 10:18:34 AM
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