Bitcoin Price Hits $69,000; Will It Break $75,000 Soon?

As a researcher with a background in finance and experience in following the crypto market closely, I believe that this week has been pivotal for Bitcoin and altcoins. The approval of the spot Ethereum ETF by the U.S. SEC was a major catalyst for the recent price surge, but there are still headwinds that could prevent Bitcoin from hitting a new all-time high.

Bitcoin‘s price surged by 10% this week, climbing from $65,860 to $71,979. However, it has since stabilized within the range of $68,500 and $70,000. The crypto market, particularly altcoins, displayed significant volatility as investors anxiously anticipated the U.S. Securities and Exchange Commission’s (SEC) ruling on a proposed spot Ethereum Exchange-Traded Fund (ETF).

As a researcher studying the cryptocurrency market, I observed a significant development towards the end of the past week. The Securities and Exchange Commission (SEC) made an approval for a spot Ethereum Exchange Traded Fund (ETF). This news positively impacted Bitcoin and altcoins, leading to notable gains. However, the question remains: will this event trigger a Bitcoin price rally to a new all-time high? Let’s delve deeper into the possible implications of this SEC decision.

BTC Price Action Sparks New ATH Speculations

Major Week for Crypto

As a researcher studying the cryptocurrency market, I’ve noticed some significant developments this week that have fueled renewed speculation about all-time high prices for Bitcoin among investors. Several pivotal events have transpired: The House passed legislation, known as FIT21, aimed at regulating crypto; an anti-CBDC bill was introduced, preventing the Federal Reserve from issuing Central Bank Digital Currencies (CBDCs); spot Ether Exchange Traded Funds (ETFs) received approval; and after outflows in earlier weeks, there has been a surge in buying for spot Bitcoin ETFs.

Headwinds to Bitcoin New All-Time High

As a researcher studying the crypto market, I’ve observed an uptick in positive sentiment, with the market sentiment index rising from 70 (greed) to 76 (extreme greed). However, despite this surge in optimism, there remain significant challenges for Bitcoin to reach new all-time highs.

Bitcoin maintains its position above the crucial support of $66,000 following the moderate US Consumer Price Index (CPI) inflation report, which caused a surge in Bitcoin’s price in mid-May. Additionally, Bitcoin experienced a significant breakout from a two-month trendline this week, leading to increased buying interest and bullish trades for long positions.

Approximately 65,687 Bitcoin options with a total value of around $4.54 billion are approaching their expiration dates. With a put-call ratio of 0.57, put options slightly outnumber call options. The point of maximum potential loss (max pain point) is at $65,000, suggesting a higher probability of Bitcoin price decreases following several days of low trading activity. IV, the measure of volatility, has seen noticeable reductions across all key timeframes, potentially leading to more significant price fluctuations in BTC.

BTC Predictions by Analysts

Crypto experts are optimistic that Bitcoin’s price will reach a minimum of $100,000 this year, primarily due to anticipated interest rate reductions from the US Federal Reserve and other central banks. In his latest addresses, Fed Chairman Jerome Powell expressed confidence in implementing three rate cuts and dismissed any worries related to stagflation.

As a research analyst, I’ve observed Bitcoin’s price movements closely. After hitting successive lower lows for weeks, Bitcoin surprisingly formed higher lows over the past three weeks. This bullish pattern aligns with the 30-day Williams%R indicator, which suggests that overbought signals can sometimes be bullish.

As a crypto investor, I’m keeping a close eye on the market analysis provided by Michael van de Poppe. He anticipates a prolonged consolidation phase and even suggests a possible revisit of the $61-63K range for Bitcoin. He also mentioned that the rotation from Bitcoin to Ethereum is causing this extended sideways trend. Furthermore, an observable bullish divergence in the weekly chart implies an upcoming shift towards altcoins.

As a researcher studying the cryptocurrency market, I’ve noticed an intriguing trend emerging with whale transactions and Bitcoin (BTC) prices. According to IntoTheBlock’s on-chain data, whale addresses have been actively accumulating Bitcoin, leading to approximately $1.4 billion worth of BTC in their balances. When the prices dipped below $67,000, these large investors seized the opportunity and bought even more Bitcoin, further fueling this trend.

Will BTC Price Hit $75,000 Soon?

In the previous 24 hours, the BTC price experienced a 1% surge and is now hovering around $69,000. The lowest and highest prices during this period were recorded at $68,343 and $69,579 respectively. It’s worth noting that trading volume has decreased by approximately half within the last day, suggesting a reduced level of trader activity. With the US market closed for Memorial Day on Monday, buying pressure is currently low.

In simpler terms, the data from Bitcoin options and futures markets suggests that roughly equal numbers of contracts were bought and sold during the past 24 hours. The total open interest for both Bitcoin futures and options has decreased recently. Market participants anticipate reduced trading activity in the near future due to holidays and other reasons.

As a researcher, I’ve observed that the US dollar index (DXY) dipped to a low of 104.64 from a previous high above 105. The US 10-year Treasury yield followed suit, dropping to 4.467%. Since Bitcoin tends to move in the opposite direction of both the DXY and Treasury yields, this shift has alleviated some pressure on the cryptocurrency market. According to the CME FedFunds Tool, there’s now a 45% probability of a 25 basis point rate cut in September.

The mentioned elements serve as significant drivers propelling the upward trend in Bitcoin’s price. Traders and investors continue to hold bullish sentiments towards Bitcoin, increasing the likelihood of reaching a new record high, even though pinpointing the exact price and timing is challenging.

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2024-05-25 20:28