Bitcoin (BTC) surpassed expectations and reached the $70,000 milestone over the weekend. This surge comes as the cryptocurrency prepares for a weekly candle, signaling a reversal among major market participants. The Trading View platform reported a significant jump to $69,000, with Bitcoin nearly surpassing the local boundaries of $69,781 on Bitstamp.
Traders’ sentiment ahead of the weekly close is influenced by past weekend scenarios, as they anticipate a lack of downward pressure and an upward swing. A popular trader noted that “this weekend price has mostly grinded up instead of hovering at the same level and no such movement on weekends,” reflecting the overall mood of larger market players.
According to Michaël van de Poppe, founder and CEO of MNTrading, the $69,000 price level is crucial. While he believes the price could surpass $70,000, this level will prove challenging for BTC bulls. Surpassing this range may signal an expected increase in capitalization leading up to the Bitcoin halving. However, a bearish descending triangle indicates the risk of resistance at $72,000.
Institutional investors are displaying renewed interest in Bitcoin ETFs, driving net inflows. The trading volumes of US spot Bitcoin ETFs have been rising, leading to a switch from outflows to net inflows last week. This shift was partly due to the sale of billions of shares of digital assets by Genesis, an insolvent crypto lending firm, impacting the Grayscale Bitcoin Trust (GBTC).
Additionally, buying institutions, including BlackRock, the world’s largest asset manager and ETF provider, have added major American banks to their pool of authorized participants. ETFs experienced cash flows of over $200 million in excess at the close of the week, with net cash flows totaling approximately $570 million.
Bitcoin’s performance, along with recent crypto market dynamics, is contributing to a bullish environment and raising investor optimism. The bullish weekly close of Bitcoin is currently the topic of discussion, and the rise of altcoins is a direct result. This suggests that a broader market bull run may be on the horizon. It is worth noting that Bitcoin’s major moves often precede overall market momentum, which is frequently mimicked.
Investors and speculators closely observe the crypto market’s constant progress and the community’s reactions. The resumption of the uptrend and the potential entry of new institutional investors contribute to a positive outlook for Bitcoin’s future trajectory. However, it is important to acknowledge that price swings and fluctuations are inherent in the market.
The coming days and weeks will be pivotal for Bitcoin, as it attempts to overcome formidable resistance levels. The market is also anticipating the next halving event. The equity of institutional investors and the broader altcoin market will play a vital role in determining Bitcoin’s price direction.