Bitcoin is approaching the $67,500 resistance level and a potential breakout could result in a new all-time high.
Analysts see limited bullish signs, supportive ETF inflows and stable inflation.
Positive momentum for BTC spot ETFs and bullish market sentiment suggest that Bitcoin will rebound.
Bitcoin’s price action has seen a notable improvement recently. The price rebounded to the late April resistance area of $67,500 and surpassed the early May high of $64,000.
According to 10X Research, a breakout for Bitcoin could lead to new all-time highs. The research firm’s Bitcoin ETF model supports these predictions.
Why are analysts bullish on Bitcoin’s recovery?
The report highlights the importance of the “line in the sand” at $68,300. Surpassing this level could spark a strong rally. Bitcoin is currently trading bullish, with $67,500 being the next key breakout level.
Selling pressure remains subdued. However, market structure and fundamentals still pose challenges. Bulls are looking for a big narrative to ignite investor interest.
Despite these challenges, Bitcoin’s downside appears limited. Inflation data is unlikely to rise significantly, and Federal Reserve Chairman Jerome Powell has ruled out a rate hike.
This environment is conducive to the resumption of Bitcoin ETF inflows from long investors. Multi-strategy funds are likely to remain on the sidelines due to low funding rates and weak retail trading volumes.
Bitcoin prices are expected to rise gradually, in stark contrast to the explosive rally earlier this year. Stronger U.S. stocks and the U.S. presidential election cycle could support this bullish narrative.
Bitcoin closed the week at around $66,300, up more than 10% since May 13. Most of the price gains occurred on Wednesday, while the rest of the week showed relatively stable price action.
Cryptocurrency analyst Jelle echoed 10X Research’s bullish predictions, noting that Bitcoin broke its local downtrend, reclaimed its previous cycle high, and is now consolidating around $67,000.
“It’s time to go back to the Seventies, or even further,” Yelle said.
Matteo Greco, research analyst at digital asset firm Fineqia, said last week’s positive price action was also driven by increased demand for BTC spot ETFs.
Greco told BeInCrypto: “After five weeks of low demand, which resulted in cumulative net outflows of approximately $1 billion, BTC spot ETFs saw net inflows of approximately $950 million last week, reflecting the highest demand levels since March.
Additionally, Santiment data shows that Bitcoin wallets holding less than 0.1 BTC have seen their total holdings decrease by 0.46% over the past week.
The capitulation of small Bitcoin wallets. Source: Santiment
“Historically, small wallets dumping coins towards large wallets is an encouraging and bullish sign for BTC,” Santiment wrote.
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