Here’s why BTC rose 15% in 4 days

Bitcoin price surged to a high of $65,007 on July 16, 2024, marking a 15% rise within the last four trades, market data trends highlight the key catalysts behind the renewed bullish momentum.

Bitcoin ETFs Invest $515M as ETH ETFs Close Start

One of the primary drivers behind Bitcoin’s recent rally has been the anticipation of Ethereum ETFs launching in the US next week. This development is expected to improve institutional interest and confidence in the broader cryptocurrency market, indirectly benefiting Bitcoin as the market leader.

According to Bloomberg, the Ethereum ETFs will now launch on July 23, with several major asset managers including BlackRock and VanEck leading the charge.

In response to the green light from the US SEC on Ethereum ETFs’ impending launch date, the Bitcoin counterparts have attracted increased demand in the past week. The chart above shows that the active Bitcoin ETFs currently held a cumulative balance of 870,700 BTC during the July 5 market drop.

But at the time of writing on July 16, the Bitcoin ETFs’ holdings reached 878,830 BTC. This reflects that the Bitcoin ETFs acquired an additional 8,100 BTC worth approximately $515 million within the past 10 days alone.

This confirms that attitude Bitcoin ETFs are increasing their demand for BTC as the Ethereum ETF launch date approaches. If this market trend continues in the coming days, Bitcoin price may continue on its current upward trajectory towards $70,000.

Moreover, the positive shift in the US macroeconomic environment has also played a crucial role in strengthening Bitcoin’s ongoing price rally. The latest non-farm payrolls (NFP) data beat expectations, indicating a strong labor market and economic resilience.

Additionally, recent consumer price index (CPI) data revealed a slower-than-expected rise in inflation, easing concerns about aggressive monetary tightening by the Federal Reserve.

Both indicators indicating lower inflation pressures suggest that the US Fed may now be more inclined to cut interest rates, which will create a favorable environment for risk-on assets such as Bitcoin.

Bitcoin Price Prediction: Rocky Road to $70k

Bitcoin’s recent bullish momentum has been impressive, with the price peaking at $65,007 on July 16, 2024. This 15% rise over the past four days highlights the strong buying interest in the market. The technical indicators in the chart suggest that Bitcoin may continue its upward trajectory, albeit with some volatility.

The Chande Momentum Oscillator (ChandeMO) has risen sharply to 71.52, indicating strong bullish momentum. This rise reflects increasing buying pressure and a potential continuation of the uptrend.

The Average True Range (ATR) stands at 2,431.53, indicating increased volatility, which is typical during periods of strong price movements. This suggests that while Bitcoin may experience some fluctuations, the overall trend remains bullish.

Within the current dynamics, the immediate support level is around $62,000, which held firm on Tuesday morning during the initial consolidation phase.

This level will be critical for maintaining the bullish momentum. On the upside, the first resistance level is at $68,000, with a more significant hurdle at the psychological $70,000 mark. Breaking these resistance levels will pave the way for new all-time highs.

Given the current market dynamics, Bitcoin’s journey to $70,000 looks promising, but not without challenges. Investors should keep a close eye on the support levels and watch for any signs of weakness.

If Bitcoin manages to maintain its momentum and break through the $68,000 resistance, $70,000 could be reached. However, the elevated ATR indicates intense volatility ahead.