Bitcoin price added another 3% today to last week’s 10% upward move as it jumped from $65,860 to 71,979, but is consolidating in the $68.5K-$70K range since hitting the local high. The crypto market, especially altcoins, witnessed massive volatility as investors awaited the US SEC’s decision on spot Ethereum ETF.
The week ended strong for Bitcoin and altcoins as the SEC-approved spot Ether ETF, but will this spark a BTC price rally to a new all-time high?
BTC Price Action Sparks New ATH Speculations
Big Week for Crypto
Bitcoin price performance this week has sparked new all-time speculation among investors. This week was marked by several critical moments – the House passed the FIT21 for crypto regulation and the anti-CBDC bill that prohibits the Federal Reserve from issuing CBDC, spotting Ether ETFs approval and Bitcoin ETF buying look at outflows in earlier weeks.
Headwinds to Bitcoin New All-Time High
The crypto market sentiment increased to 76 (extreme greed) from 70 (greed). However, headwinds continue for Bitcoin price to reach a new high. For the short term, macroeconomic events such as US PCE inflation data and crypto market crash on May 31 are primary obstacles to the continued Bitcoin price rally.
Bitcoin is holding firmly above key support level at $66K after cooling US CPI inflation caused a breakout in BTC price in mid-May. BTC also saw a 2-month trendline breakout this week, which triggered trades for long positions.
Meanwhile, more than 65,687 BTC options of a notional value of $4.54 billion will expire, with a put-call ratio of 0.57. The maximum pain point is $65,000, which indicates a high chance of Bitcoin selling after days of low trading volumes. Implied Volatility (IV) is witnessing significant declines across all major terms, meaning that volatile price movements are likely to cause a pullback in BTC price.
BTC Predictions by Analysts
Crypto analysts are bullish on BTC price reaching at least $100K this year, with interest rate cuts by the US Fed and other central banks as the main reasons. Fed Chairman Jerome Powell has reaffirmed confidence on three rate cuts and dismissed concerns about stagflation in recent speeches.
Analyst Caleb Franzen said: “Bitcoin has undoubtedly formed a new base.” After making lower lows for weeks, it made higher lows for 3 weeks. He also added that this bullish structure coincides with the 30-day Williams %R signal as overbought signals are bullish.
Popular crypto analyst Michael van de Poppe predicts a consolidation for a longer period and the possibility of even seeing $61-63K levels again. “Rotation from Bitcoin to Ethereum causes a longer sideways period,” he added. Additionally, a strong weekly bullish divergence implies a rotation to altcoins in the coming period.
Whales buy the dip as a new buying trend emerges for BTC price. On-chain data from IntoTheBlock indicates that whale addresses were the main accumulators, resulting in $1.4 billion worth of BTC in their balances. As prices fell below $67,000, whales hoarded more BTC.
Will BTC Price Reach $75,000 Soon?
BTC price jumped 3% in the last 24 hours, with the price currently trading near $70,000. The 24-hour low and high are $68,343 and $70,479 respectively. Furthermore, the trading volume has decreased by 50% in the last 24 hours, indicating a decrease in interest among traders. So the buying pressure is low amid a long holiday weekend as the US market is closed on Monday for Memorial Day.
Bitcoin options and futures data suggests that buying and selling are almost balanced over the past 24 hours as total open interest in BTC futures and open interest in options have declined over the past few hours. Traders expect low trading volumes in the coming days due to holidays and other factors.
The US dollar index (DXY) fell to a low of 104.64 from a dollar index high of above 105. The US 10-year Treasury yield also fell to 4.467%. As Bitcoin moves against DXY and Treasury yields, pressure has eased and CME FedFatch Tool indicates a 45% chance of 25 bps rate cuts in September.
These factors are catalysts for continued rise in BTC price as traders and investors remain bullish on Bitcoin. Although it is difficult to predict the actual price and timing of a new all-time high, the current scenario suggests that the chance of reaching a new high is high.
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Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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