Following Friday’s 6.46% gain, Bitcoin took a bullish stance to downplay broader market concerns. With BTC price reclaiming $67,000, the chances of an uptrend are improving.
Moreover, with the dovish outcome of the Federal Reserve meeting, market analysts expect the crypto market to be boosted along with the surge in the US dollar. From a slightly different perspective, the former BitMEX CEO expects Bitcoin price to trade between $60,000 and $70,000 in the coming months.
The bullish reversal helped Bitcoin avoid a break below the psychological level of $60,000. Will this reaction to huge demand at low levels lead to a massive jump in May?
Will next week be a positive end? Let’s find out more in the BTC price analysis below.
Will BTC price sustain above $65,000?
The 14% bearish pullback in April broke the 7-month streak of bullish candles on the 1M chart. Starting from the all-time high of $73,794, the pullback broke the $60,000 support area in a short period of time before briefly falling to $56,500.
However, high demand below $60,000 pushed BTC price back above $67,000. Buyers avoided a drop below $60,000 on the weekly chart. Moreover, lower price rejections were quite evident in the candles of the past few weeks, increasing the chances of a bullish reversal.
The volume indicator shows that weekly volumes declined during the pullback phase, increasing the chances of an uptrend. Currently, BTC price is $67,232, showing the possibility of continued pull-up in the 1W chart.
Will Bitcoin Mark the First Bullish May in 4 Years?
According to BTC’s historical price data, May has been bearish for Bitcoin over the past three years. With a drop of 35% in 2021, 15% in 2022, and 6.98% last year, this year’s limited bearish sentiment could end with a bullish comeback.
Regarding price analysis, according to the Fibonacci retracement level, a bullish reversal occurred at the 78.60% level. With the upside potential, the largest cryptocurrency could reach the $70,000 ceiling. Conversely, the reversal could start a consolidation with the bottom support at $63,000.
Bitcoin ETFs recovered this week
In the past week, 11 spot Bitcoin ETFs in the United States increased their Bitcoin holdings by 14,878.65 BTC, accounting for nearly $940 million.
With such a large increase, it is well prepared for the market to rise next week, especially Grayscale's GBTC has seen net inflows for three consecutive days, which may become a major change in the market investment direction.Because it means that investors are eager to "enter the market".
It is worth noting that this does not mean that the price of tokens will rise "once and for all". Today's investment sentiment has declined compared to the trading day, which shows that more investors will choose to wait and see without stronger positive stimulus.
In addition, the performance of Hong Kong's crypto ETF is worrying, with 566.65 BTC outflows in the past week. Although this is judged by the market as a shift in funds brought about by the rise in the stock market, it still cannot cover up the lack of confidence in the subsequent crypto market in the Asian market.
Through this week's trading volume, we can see that retail investors have increased their holdings by more than 23,000 BTC, of which more than 50% of crypto investments are concentrated in BTC spot ETF transactions, which means that whether the strong buying momentum can be maintained next Monday will become an important reference for whether the market can continue to rise.
At the same time, the slowdown in quantitative tightening policies in June will help the market get out of trouble, and the probability of continued breakthroughs is greater than that of declines. At least most people think that the price below $63,000 is unlikely to appear.