According to Cointelegraph: Bitcoin (BTC) is under the spotlight this week as supply shock predictions resurface with exchange reserves dipping to seven-year lows. Bitcoin (BTC) begins the week firmly as $67,000 returns in line with traditional financial markets.
The leading cryptocurrency is inching closer for a rematch with maximal resistance levels around $69,000 and $73,800, being the past and present all-time highs. Several factors, such as the USA's economic indicators from the Federal Reserve and unemployment data, could stimulate bullish continuity.
BTC price action is experiencing growing belief among traders that the local bottom has been hit, and upside is expected after two months of consolidation. Interestingly, a divergence is cropping up - prices are rising, but sentiment remains lower than during the March peak.
Bitcoin continues to apply pressure below all-time highs, erasing previous losses to close last week at $66,210. The majority of immediate overhead resistance is just below $68,000 according to data from CoinGlass.
External factors, such as U.S. economic reports, will be influencing the market environment. Senior officials from the Federal Reserve will be in focus as they make a pile of speaking appearances this week.
Meanwhile, Bitcoin ETFs are buying three times the supply of new Bitcoin from miners, with ETF inflows hitting almost $1 billion last week - the best weekly performance since March. This increase in demand will result in ETF providers purchasing more BTC than the daily supply offered by miners.
Bitcoin exchange reserves have declined to the lowest levels since 2017, with only 1,918,417 BTC readily available for procurement on significant trading platforms as of May 19, 2024.
Finally, the Crypto Fear & Greed Index indicates a greed level of 70/100, yet without the excessive levels seen during Bitcoin's all-time highs in March, suggesting a more balanced market sentiment.
