Bitcoin Poised for All-Time Highs on Breaking $67,500 Threshold Amid Tether’s Influx
Summary:
Bitcoin stands a chance to hit new record highs if it breaks past the key resistance level of $67,500, according to Markus Thielen from 10x Research. These predictions come as Bitcoin recovers above $66,000, with a previous week's growth of over 7.3%. U.S. Bitcoin ETFs have had a positive two-week run, gathering over $200M in net inflows. However, significant resistance remains at the $67,500 mark. Recent developments such as Tether producing $1 billion of Tether USD that drove Bitcoin's surge and plans to invest 15% of its net profits into Bitcoin may potentially bolster the rally.
Bitcoin could be on its way to setting new record prices if it successfully breaches the key level of $67,500 that has proven to be a major roadblock in its growth trajectory. This crucial price limit for Bitcoin (BTC) could dictate its future performance, as stated by Markus Thielen, head analyst at 10x Research, in his report published on May 20. Thielen is of the opinion that if Bitcoin crosses the $67,500 threshold, it might reach unprecedented highs, a likelihood projected by their Bitcoin ETF model.
This forecast comes in the wake of Bitcoin rallying and reclaiming ground over the psychological barrier of $66,000. In the past week, the world’s premier cryptocurrency has appreciated by over 7.3%, as per data from TradingView.
A look at last week's trading charts gives us reason to be optimistic about Bitcoin's future trajectory, as added by Thielen: “If Bitcoin crosses $67,500, it could potentially touch new record highs, which aligns with our Bitcoin ETF model's projections.”
Furthermore, the Bitcoin Exchange Traded Funds (ETFs) in the US have shown a positive trend for the second week in a row, collectively drawing in excess of $200 million in net inflows. This, however, is half the previous week's total of $413 million, as per Dune's data.
This comes after Bitcoin ETFs saw three consecutive weeks of negative flows leading up to May 6. Institutional investments from ETFs have contributed greatly to Bitcoin's rally to new highs. As of February 15, Bitcoin ETFs comprised approximately 75% of the fresh investments in the largest cryptocurrency as it eclipsed the $50,000 ceiling.
However, Bitcoin is facing significant resistance at the $67,500 mark. A potential rise could result in nearly $300 million worth of leveraged short positions being liquidated across all crypto platforms, as highlighted by CoinGlass.
In the monthly charts, Bitcoin has transformed a key opposition level into support, which according to a post by famous crypto strategist Rekt Capital on May 16, could herald a bullish trend.
All this coincides with Tether producing $1 billion of Tether USD (USDT) on May 17, pushing its annual production count to $31 billion.
Tether's newly minted USDT was key to Bitcoin's surge from $27,000 to $73,000, Lookonchain notes in a May 17 post. Tether's contributions could also play a direct role in boosting Bitcoin's rally. The company revealed plans to allocate 15% of its net profits to Bitcoin in an effort to diversify its stablecoin's asset backing. On March 31, Tether procured 8,888 BTC, valued at $618 million, which makes it the seventh-biggest Bitcoin holder globally, as per Bitinfocharts data.
Published At
5/20/2024 11:47:27 AM
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