Bitcoin (BTC) exceeded expectations and surged to the $70,000 mark over the weekend. This surge comes as the cryptocurrency prepares for a weekly candle, signaling a reversal for major market participants. Trading View revealed an impressive jump to $69,000, with Bitcoin almost reaching the local barrier of $69,781 on Bitstamp.
Ahead of the weekly close, traders are looking to past weekend scenarios to gauge the lack of upward pressure. One popular trader noted that “this weekend’s price has mostly grinded up instead of hovering at the same level and no such movement on weekends.” This indicates the general sentiment of larger market players.
According to Michaël van de Poppe, founder and CEO of MNTrading, the price level of around $69,000 is crucial. He believes that the price could surpass $70,000, but this level will pose a tough challenge for BTC bulls. Breaking through this price 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 the $72,000 level.
Institutional investors are showing renewed interest in Bitcoin ETFs, driving net inflows. The trading volumes of US spot Bitcoin ETFs have been increasing, signaling buying activity from institutional investors. Last week, there was a switch to net inflows after weeks of outflows. This was partly due to the sale of billions of shares of digital assets by Genesis, an insolvent crypto lending firm.
In addition, buying institutions are catching the attention of BlackRock, the world’s largest asset manager and one of the ETF providers. Major American banks have been added to the pool of authorized participants. Cash flows hit ETFs at over $200 million in excess by the end of the week, with net cash flows reaching about $570 million.
Bitcoin’s performance has also contributed to the bullish sentiment in the crypto market. The recent uptrend in Bitcoin’s price has given hope to investors, resulting in the rise of altcoins. This suggests that a wider market bull run may be on the horizon. It’s important to note the interconnected nature of the crypto market, with major moves by Bitcoin often influencing overall market momentum.
Investors and speculators closely observe the crypto market’s progressive process and community reactions. The resumption of the uptrend and the potential influx of new institutional investors paint a positive picture for Bitcoin’s future trajectory. However, volatility and price fluctuations are not uncommon in the crypto market.
The following days and weeks will be crucial for Bitcoin as it aims to overcome formidable resistance walls. The market is also awaiting the next halving event, which will have an impact on Bitcoin’s direction. The market equity of institutional investors and the broader altcoin market will play a significant role in determining the price of Bitcoin.
