Bitcoin Will Explode If Bulls Break The “Fuse” At $72,000

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As an experienced analyst, I believe that Bitcoin’s price surge above $70,000 is not a mere coincidence but rather a significant development that could lead to even higher prices. Willy Woo’s analysis of the potential for a short squeeze after breaking the resistance level at $72,000 holds merit based on historical market trends.

The price of Bitcoin has climbed approximately 2% over the past 24 hours, surpassing the $70,000 mark and reaching psychologically significant heights. With bulls anticipating further growth, on-chain analyst Willy Woo posits that the digital currency could experience even greater increases once it breaks through the crucial resistance point at $72,000.

Will Bitcoin Soar To $75,000 Due To A Short Squeeze?

After reaching a peak of over $66,000 on May 20th following a series of lower lows, Bitcoin retreated to around $56,500, leaving bulls reluctant to push the price higher. Currently, Bitcoin’s price is contained within a broader range, with resistance at $72,000 – the first significant support level – and the all-time high of $73,800 acting as a ceiling.

A violation of the $72,000 mark would be noteworthy given its importance, which has been challenged but not surpassed in the past few weeks. One possible reason for potential price growth is that a breakout, preferably accompanied by increasing trading volume, could indicate the commencement of another upward trend, sparking interest from buyers.

If Woo reaches the milestone of closing a deal worth $72,000, the price could surge rapidly, potentially exceeding $75,000 due to a short squeeze. Once the bulls manage to push the price above this level, there will be a chain reaction, causing numerous short positions to be liquidated, resulting in a price increase.

According to Woo’s assessment, approximately $1.5 billion in short positions may be forced to cover their positions as Bitcoin price reaches up to $75,000. If this occurs, it is strongly suggested that new record-highs for Bitcoin will emerge around seven weeks following the Halving event.

Inflow To Spot BTC ETFs Rising, Demand Will Only Continue Rising

Supporting this optimistic outlook is the significant increase in institutional investments into Bitcoin spot exchange-traded funds (ETFs) on June 4th. As reported by Sosovalue, Bitcoin ETF providers purchased approximately $886.6 million in Bitcoin that day.

Fidelity purchased a massive amount of $378.7 million worth of Bitcoin, while BlackRock, the instigator of the largest spot Bitcoin ETF, acquired approximately $274.4 million. Bitwise significantly increased their holdings with a purchase of around $61 million in Bitcoin.

It’s worth noting that Grayscale recorded significant investment in Bitcoin, with a total of $28.2 million poured in by its clients – the second largest single-day influx following the introduction of spot Bitcoin ETFs in early 2024.

As a researcher studying the cryptocurrency market, I’ve observed an increasing institutional appetite driving Bitcoin’s price above the $71,500 mark. Crucially, this level remains sustained, with the price continuing to hover above the $70,000 threshold. This development underlines the bullish momentum triggered by the price spike in the middle Bollinger Band on June 3rd.

As a researcher studying the financial markets, I can tell you that the desire for intricate Bitcoin derivatives is likely to grow even more. Yesterday marked a significant milestone with the Thailand Securities and Exchange Commission (SEC) granting approval for the country’s first spot Bitcoin Exchange-Traded Fund (ETF). This groundbreaking product will primarily cater to affluent and institutional investors, following in the footsteps of a similar launch in Australia.

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2024-06-06 05:10