Bitcoin Soars Past $70,000: A Look at the Surge and Market Resistance
Summary:
On May 21, Bitcoin (BTC) exceeded $70,000 due to a surge in buying activity. The largest cryptocurrency by market capitalization made significant strides against the USD, aiming to maintain its newly gained position. The bullish momentum resulted in a noteworthy loss for short sellers. Influential trader, Skew, suggested that the US Bitcoin ETFs might have influenced this surge, while other traders cautioned that Bitcoin was facing significant resistance, hindering further immediate growth. At the time of writing, ETH/USD was trading near $3,700, showing an increase of 18% in 24 hours and 25% over the past week.
Bitcoin (BTC) soared past the $70,000 mark on May 21, thanks to the persistent influx of buyers which ignited a swift rally in the BTC price. Illustrating the noticeable advance of BTC against the USD, sources from Cointelegraph Markets Pro and TradingView demonstrated how BTC/USD was striving to secure its newly acquired position near crucial psychological thresholds. Bitcoin made unexpected strides in the last daily close, as a continuous stream of buying activity took the market to almost $72,000, according to Credible Crypto. As a consequence, Bitcoin, the crypto market's most substantial player, caused considerable losses for short sellers, with data from CoinGlass indicating that BTC shorts were reduced by $85 million in the 24-hour period up to the time of reporting.
Offering his observations, analyst Willy Woo suggested that the bulls were attempting to overcome a resistance level that had been in place for over a month. He informed his X (formerly Twitter) followers that, “The build up of Bitcoin's short position over one month has been liquidated. We have one more layer to get through to short squeeze past the all-time highs.” One audacious forecast even proposed $100,000 as a probable outcome following a breakout accomplished on weekly time frames, according to alphaanalysis.io.
Influential trader Skew speculated that the Bitcoin exchange-traded funds (ETFs) of the United States may have spearheaded this movement, foreseeing "significant days ahead" leading up to the decision regarding US spot Ether (ETH) ETFs. Meanwhile, ETH/USD traded close to $3,700 on the same day, marking an increase of 18% in 24 hours and 25% over the past week.
Commenting on the surge in demand, respected trader and commentator, Credible Crypto, stuck to a careful perspective. He reemphasized the idea that the BTC price action was facing "significant resistance" and was unlikely to overcome it in the near term. He pointed out in part of an X discussion, “There are no changes to the plan - we are facing significant resistance at the moment and I clearly stated that these conditions are not conducive for a move to the highs that could trigger the next major leg upward in my opinion". CoinGlass indicated $70,630 as the most substantial area of liquidity below the spot price at the time of the report.
This article is devoid of investment advice or recommendations. Every investment or trading move involves inherent risk, and it is advised for readers to carry out their own research before making any decisions.
Published At
5/21/2024 10:16:45 AM
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