Bitcoin Price Soared To $70,000 As Demand Surged For Both Spot Purchases And Bitcoin ETFs

Analysts anticipate Bitcoin's price trajectory to ascend to new highs following the conclusion of the recent consolidation phase.

Source: zerocap.com

The Bitcoin price surged to the highly sought-after $70,000 milestone amidst a significant uptick in spot purchasing and spot BTC exchange-traded fund (ETF) buying. This has prompted discussions within the cryptocurrency community, debating whether the bull market is in its infancy or approaching its zenith.

Bitcoin Charts And Spot ETF Activity Underscore The Reversal In Trend

Analyst "ELI5 of TLDR" suggests that despite some indicators showing topping patterns, the majority of on-chain indicators indicate the emergence of a new bull market. The recent bounce in support near $60,000 has stirred increased interest, with Farside Investors reporting approximately $950 million in inflows last week, a figure not seen since March. Should this trend persist, BTC could potentially surpass expectations. Currently, BTC is trading within a few hundred dollars of $70,000, with the 20-day EMA at $64,371 and a positive RSI indicating a higher likelihood of an upward breakout. Surpassing the $68,000 resistance suggests that the BTC price is headed toward $73,777, although this level may trigger a strong bearish response. Conversely, a breach below the moving averages could signal a bearish reversal, with potential declines to $59,600 and $56,552.

The Bitcoin Price Is Buoyed By Shifting U.S. Monetary Policy

Against the backdrop of the broader economy, Bitcoin's 51% year-to-date gain reflects investors' expectations of U.S. monetary expansion, evidenced by the M2 monetary base surpassing $21.0 trillion in April 2024. This expansion in circulating money suggests mounting inflationary pressures, despite a cautious approach to spending by both companies and individuals. The strategies adopted by the United States Federal Reserve to address inflation and prevent a recession could influence liquidity levels and consequently, the appeal of scarce assets such as Bitcoin.

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