- Bitcoin has briefly spiked towards $70,000, but profit-taking has caused a dip.
- Liquidations have caused a short-term dip, and $70,000 has become a key resistance level.
- Technical indicators, on-chain data, and investor interest have fueled optimism.
Bitcoin’s recent surge towards $70,000 proved short-lived. After the all-time high was breached, traders scrambled to lock in profits. This triggered a wave of liquidations, causing the price to dip to $66,600.
Will Bitcoin Break $70,000?
However, despite the volatility, analysts remain optimistic about Bitcoin’s future, predicting a potential test of $70,000 this weekend and a further surge towards $90,000 in the coming weeks.
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The weekend’s price swings saw $240 million in leveraged positions liquidated within an hour, impacting both long and short positions. This intense volatility has established $70,000 as a key resistance level, with significant sell orders placed around this mark on major exchanges.
Undeterred by the short-term dip, the overall sentiment in the Bitcoin market leans bullish. This optimism stems from technical indicators, on-chain data, and fundamental factors.
Technically, after reaching its new high, Bitcoin seems to be consolidating in a triangular pattern, which some analysts interpret as a bullish continuation signal. This pattern often precedes a price increase similar to the one observed earlier, with a rise in trading volume.
Analysts predict a breakout from this pattern, targeting a price of $92,500 in the coming weeks, representing a 35% jump from current levels.
Investor Interest in Bitcoin ETFs Soars
Another factor supporting the bullish sentiment is the recent rise in capital inflows into Bitcoin ETFs based in the United States. These ETFs hold over $53 billion in reserves, a significant jump from $27.95 billion in January when they first launched.
The surge in ETF inflows suggests a growing investor interest in Bitcoin, potentially driving demand for the cryptocurrency as fund managers purchase more Bitcoin to reflect the holdings of the ETFs they manage.
On the Flipside
- While some analysts view the triangular pattern as bullish, it’s important to consider that technical indicators can be subjective and don’t guarantee future price movements.
- While analysts are optimistic, the recent price swings and liquidations highlight the continued volatility in the Bitcoin market.
Why This Matters
Despite the recent pullback after breaching $70,000, analysts remain bullish due to technical indicators, rising ETF inflows, and overall positive sentiment. This suggests a potential breakout and further price surges in the coming weeks.
To learn more about BlackRock’s Bitcoin ETF and its impact on the recent surge in Bitcoin prices, read here:
BlackRock Bitcoin ETF Marks New Inflow High as BTC Claims ATH
To learn more about the SEC’s delay in approving Ether ETFs and the applications from BlackRock and Fidelity, read here:
SEC Extends ETH ETF Wait with BlackRock and Fidelity Delays
