As a researcher with experience in the cryptocurrency market, I believe the recent price pump of Bitcoin (BTC) above $66,000 is a significant development that could signal an inevitable push towards new all-time highs. The sudden surge in price was fueled by unexpectedly low US inflation data, which weakened the US dollar and led to increased demand for riskier assets like stocks and cryptocurrencies.
As a crypto investor, I’ve seen Bitcoin (BTC) surge by over 7 percent within the last 24 hours, pushing its price back above the $66,000 mark. The trading volume for Bitcoin has significantly increased during this time, nearly doubling its daily average to approximately $42 billion on Thursday, particularly during the early London session.
The unexpectedly low US inflation rate, as indicated by the Bureau of Labor Statistics’ Consumer Price Index (CPI) figure of 0.3%, caused a surprising increase in Bitcoin’s value. This data release intensified the depreciation of the US dollar against other currencies worldwide.
The latest inflation figures have triggered a significant sell-off in the US dollar versus major stock indexes, with the S&P 500 Index (SPX) taking the lead. Additionally, there’s growing optimism among investors regarding both the stock market and crypto assets as the US elections approach.
Based on current market information, the S&P 500 gained approximately 1.17 percent and hit a new record high of around 5,308.15 in the extended trading hours. Likewise, the Nasdaq Composite Index grew by 1.4 percent on Wednesday, ending the day at roughly 16,742.
Bitcoin Price Signals Inevitable Pump to New ATH
As a crypto investor, I’ve been feeling stuck in a correction phase for the past couple of months with Bitcoin’s price trend. However, the recent surge in value has managed to invalidate that downtrend. From a technical perspective, when I looked at the charts on Wednesday, I was pleased to see that Bitcoin’s price had closed above the daily 50 Moving Average (MA) and the 50 Relative Strength Index (RSI).
To confirm a bullish turnaround from a daily head and shoulders (H&S) pattern, Bitcoin’s price against the US dollar must persistently end each trading day above $67K in the upcoming weeks.
The strong upward trend in Bitcoin is being reinforced by increasing institutional investment through spot Bitcoin Exchange-Traded Funds (ETFs). According to an analysis of on-chain data by Santiment, these seven major spot Bitcoin ETFs recorded a daily trading volume of approximately $5.65 billion on Wednesday, which is the highest since March 24, 2024.
The volume of Bitcoin ETF trading is surging strongly, with the top 7 ETFs reaching a collective total of $5.65 billion – the highest daily figure since March 24th. No longer is it just large investors hoarding Bitcoin on the blockchain. Monitor this trend closely using our complimentary dashboard.
— Santiment (@santimentfeed) May 16, 2024
Based on the analysis of seasoned trader Peter Brandt, Bitcoin’s price is poised for a significant bullish surge towards a new record high within the upcoming weeks. Moreover, according to his assessment using the HSBP (hump, slump, bump, pump) indicator, Bitcoin has already concluded its recent market correction.
As a seasoned researcher, I’ve presented this chart numerous times with slight variations, and my favored takeaway hasn’t changed: $BTC.
— Peter Brandt (@PeterLBrandt) May 15, 2024
Midterm Price Target
Over the past year, Bitcoin’s price has been surging upward, reaching an all-time high (ATH) of approximately $73,000. To reinforce this bullish trend, Bitcoin needs to consistently break through and close above its current resistance or support level at around $67,000 in the upcoming weeks.
As a Bitcoin analyst, I would interpret the current situation as follows: Should the price of Bitcoin against the US dollar manage to close above $67,000 in the upcoming period, we can expect an uptrend towards $100,000. Conversely, if Bitcoin fails to surpass this resistance level within the next few weeks, a potential correction down to $50,000 may occur. It’s essential for traders to keep a close eye on Bitcoin’s dominance, as its recent trend indicates a shift towards altcoins, hinting at a rotation of funds from Bitcoin into alternative cryptocurrencies.
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2024-05-16 12:07