- Bitcoin’s price has climbed 11% over the past 2 weeks but has suddenly been hit with a sudden drop.
- Over $159 million in leveraged long positions have been liquidated in the downturn.
- Crucial support level of $67,000 has been eyed as a potential turning point.
Bitcoin has been on a tear over the past two weeks, climbing an impressive 11%. This positive momentum comes despite some recent volatility, with futures open interest experiencing a dip. However, the outlook for the world’s leading cryptocurrency remains positive, with analysts watching developments like the recent SEC approval of Ethereum ETFs for potential impacts on the broader market.
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The DailyCoin team is committed to providing comprehensive updates to keep our readers informed. In this Bi-Weekly DailyCoin Bitcoin Regular, compiled by our expert Kyle Calvert, we will explore recent developments surrounding Bitcoin and delve into explanations behind the recent price fluctuations. Additionally, we will cover community sentiments and analyst predictions.
News and Events
Ethereum ETFs Approved as SEC Policy Shifts
The SEC greenlit eight applications for spot Ethereum ETFs, allowing traditional investors to gain exposure to Ethereum without directly holding crypto. This follows the SEC’s approval of Bitcoin ETFs earlier this year. The new ETFs won’t start trading immediately, but analysts expect it to happen within weeks.
BlackRock’s Bitcoin ETF Gobbles Up Market Share
BlackRock’s Bitcoin ETF raked in most of the $300 million surge in inflows for US spot Bitcoin ETFs on May 21. This marks a significant shift from the past six weeks and is the highest daily inflow for the fund since April. The positive sentiment is likely due to a recent rise in Bitcoin prices and speculation around the potential approval of US spot Ether ETFs.
Crypto Investment Products See Second Week of Inflows
Cryptocurrency investment products pulled in a significant $932 million over the past week, marking a positive trend after a recent market downturn. This surge is attributed to the U.S. CPI report suggesting moderating inflation. Altcoins like Solana and Cardano saw inflows, while Ether remains under pressure due to an ongoing SEC review of spot Ether ETFs.
Experts Forecast
Crypto analysts are offering a range of predictions for Bitcoin’s future, with some anticipating a significant impact from Ethereum ETFs and others suggesting a continuation of past trends.
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Daan Crypto Trades sees Bitcoin’s market dominance potentially declining with the launch of Ethereum ETFs, potentially leading to a shift in market power.
Jelle, an independent analyst, believes Bitcoin is mirroring its 2016-2017 cycle and could enter a parabolic surge exceeding $100,000 once it surpasses its 2021 highs.
Mags, a trader and analyst, suggests the current correction might be a “fake out” similar to past recoveries from lows, ultimately leading to further price increases.
Jelle also highlights Bitcoin’s recent bullish signals, including overcoming key resistance levels and hidden bullish divergence.
Matthew Hyland identifies a potential retest of a critical support zone but emphasizes a bullish long-term outlook based on Bitcoin’s breakout pattern.
Overall, these experts present diverse perspectives on Bitcoin’s trajectory, with some anticipating a shakeup due to Ethereum and others favoring a continuation of historical trends.
Current Outlook
Bitcoin bulls are facing a reality check after a surprising 2.5% price drop on May 23. This sudden reversal caught many off guard, especially those who anticipated new all-time highs after the early week surge to $72,000. Data suggests leveraged long positions were hit hard, with over $159 million liquidated as the price plummeted.
The key question now is whether the crucial $67,000 support level will hold. If it does, bulls might see a potential trading range between $67,000 and the previous all-time high. However, the significant liquidation of long positions indicates some nervousness among investors. Only time will tell if this is a temporary setback or a sign of a more bearish shift in the market.
On the Flipside
- After a sustained rise, a price pullback could be a natural technical correction in the market.
- While the SEC approval of Ethereum ETFs might be positive for the crypto market overall, it could lead to short-term capital flight from Bitcoin to Ethereum.
Why This Matters
Bitcoin’s sudden price drop after a strong rally exposes underlying volatility within the market. The size of liquidated long positions suggests investor jitters, raising concerns about whether this is a short-term correction or a potential reversal of the recent bullish trend. This could have ripple effects throughout the broader cryptocurrency market as investors reevaluate their positions.
If you like this article, you might also be interested in learning more about the history of Bitcoin. Check out this article:
10,000 Bitcoins Bought Pizza in 2010, What About Today?
In addition, if you’re interested in recent Bitcoin price trends, you might find this article useful:
Bitcoin’s Price Dips Below $70K: What Comes Next?
