The cryptocurrency market is experiencing a welcome resurgence, with Bitcoin leading the charge. Hovering near the critical $65,000 mark, the king of crypto is backed by a total market capitalization of $3.37 trillion. This positive momentum extends to top altcoins, many witnessing significant gains.
Bitcoin’s bullish trajectory is further bolstered by the success of Bitcoin spot ETFs. These investment vehicles have seen positive inflows on 14 out of the past 18 trading days. This surge in institutional investment fuels optimism that Bitcoin is poised to reclaim the $70,000 mark in the near future.
Will Bitcoin Break Out? Technical Analysis Weighs In
Despite a slight 1% correction in the past 24 hours, Bitcoin has experienced an impressive 11.93% jump over the past week. This bullish trend is reflected in technical indicators. The Moving Average Convergence Divergence (MACD) displays a rise in the green histogram, indicating strong buying pressure. Additionally, the RSI, while currently neutral, has a bullish average trendline, suggesting a positive outlook for the coming week.
One key question remains: will Bitcoin break out? The price is currently testing the resistance neckline of its rounding bottom pattern on the 1-day timeframe. This is a crucial hurdle, and the outcome remains uncertain. Additionally, Bitcoin is nearing the resistance trendline of its descending channel pattern, highlighting a potential period of increased volatility.
Bitcoin ETF Inflows: A Positive Indicator
The continued positive inflows into Bitcoin ETFs are a positive sign. Blackrock’s “IBIT” has received over $100 million for the fourth consecutive day, signifying strong investor confidence. Similar inflows are observed with Fidelity’s “FBTC.” However, Grayscale’s “GBTC” experienced a significant outflow after two neutral trading days.
Considering the current market sentiment and the strength of technical indicators, the bulls appear to be in control. If they maintain momentum, Bitcoin could break through its resistance level and test the $67,775 mark. Sustaining this level could see Bitcoin climb towards its recent high of $73,750.07 in the coming weeks.
However, the bears should not be underestimated. If they gain control, Bitcoin could lose traction and fall back towards its $60,000 support level.
Also Read: Bitcoin Up 370% in 18 Months! Daily Volume Soars to $46.4 Billion, Rivaling Visa & Mastercard
Overall, the coming days will be crucial for Bitcoin. With a combination of positive technical indicators, strong ETF inflows, and a break of key resistance levels, a breakout towards $70,000 appears increasingly likely.
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