Bitcoin (BTC) Surpasses $71,000 as Bullish Momentum Builds: Is an All-Time High Looming?
For the first time in more than a month, Bitcoin (BTC) broke through the $71,000 barrier, demonstrating a stunning comeback. Spot buying and interest in spot Bitcoin ETFs are the main causes of this upward rise. As investors pour money into these recently authorised funds, the market is exhibiting a robust increase that may portend the beginning of a longer-term bull market.
It has proven challenging to overcome resistance at the intraday high of $71,946, notwithstanding the positive surge. In spite of this, BTC was bullish at the time of writing, up 5.89% from the intraday low of $66,319 to trade at $71,061. The market capitalization and trading volume increased by 5.86% and 135%, to $1,400,852,056,633 and $51,363,824,061, respectively, indicating the optimistic attitude in the market.
REASONS FOR THE INCREASE IN BITCOIN PRICE
The current surge in Bitcoin prices has been attributed to a number of important factors. First, the April inflation rate was less than anticipated, according to data released by the U.S. Bureau of Labour Statistics. The Federal Reserve may be more likely to lower interest rates—which are now at their highest point in 23 years—according to this data, which would improve the climate for investing in assets like Bitcoin.
Furthermore, during the course of the last week, about $950 million was added to Bitcoin spot ETFs, indicating a rise in investor interest and market liquidity.
On-chain analyses point to a positive outcome for Bitcoin. Indicators like the Puell Multiple and the Bitcoin MVRV Z Score are currently at levels that often indicate a bull market is in its early stages, according to data from LookIntoBitcoin.
Furthermore, the market share of Bitcoin is still very high at over 56%, suggesting that investors still favour Bitcoin over altcoins.
Furthermore, as reported by CryptoQuant, the amount of Bitcoin exchange reserves has dropped to a seven-year low, with just 1,918,417 BTC accessible on significant trading platforms. A optimistic prediction for the price of Bitcoin is supported by its scarcity as well as the recent halving event, which decreased the amount of new Bitcoin that miners could produce.
Concurrently, the probability of the Spot Ethereum ETF being approved has grown from 25% to 75%, which can be ascribed to the positive momentum of BTC. Bullish conditions for a prolonged Bitcoin surge would be created if these funds were approved.
Technical Analysis of Bitcoin/USD
Technical examination of Bitcoin trading trends points to a promising future as well. As of right now, the cryptocurrency is trading slightly below $71,000, having broken over significant barrier at $68,000.
Technical indicators that point to an upward breakout include the relative strength index (RSI) and the 20-day exponential moving average (EMA). Should this pattern hold, Bitcoin may set new records and go closer to the predicted $73,000 target.