Bitcoin’s price has surged above $71,000 amidst the excitement surrounding the possibility of spot Ethereum ETFs. Despite this bullish trend, bearish pressures have emerged, causing aggressive buyers to become trapped at crucial resistance levels. Market sentiment has decreased over the past 24 hours as BTC has failed to sustain its buying demand, resulting in consolidation within a range-bound zone. Analysts believe this consolidation is temporary and anticipate the price to remain above a key area, hinting at a potential rebound or a new all-time high in the near future.
The consolidation of Bitcoin’s price continues as it briefly surpassed $72,000 on hopes of an approved spot Ethereum ETF. However, the bulls were unable to maintain these levels, leading to a drop below $70,000 due to selling pressure. Rekt Capital, an on-chain data provider, suggests that a weekly candle closing above approximately $71,500 could trigger a breakout from its Re-Accumulation Range. Historical trends indicate that Bitcoin may stay within this range for several more weeks.
Prominent analyst Jelle notes that Bitcoin is holding above a critical support zone of $68K-$69K, signaling strength in the market. Predictions foresee a consolidation within this range, paving the way for new all-time highs. The upcoming week is highly anticipated as it sets the stage for potential market influence from the impending $ETH ETF news.
Traders are optimistic about Bitcoin’s recent 14% surge, speculating it to be a significant market pump leading to another correction only after it reaches $90,000. Analysts view this surge as substantial, aligning both fundamentals and technicals. The TD Sequential indicator is currently indicating a buy signal, suggesting a potential rebound for Bitcoin.
Bitcoin has been trading bullishly around $70,000, with a potential breakout expected near overhead resistance levels. However, bearish traders are preventing a surge above Fibonacci channels, causing the price to consolidate below $70,000 after being rejected above $71,000. Currently priced at $70,079, Bitcoin reflects a 1.2% decrease in the last 24 hours.
The rising 20-day EMA ($68,714) and the RSI below the overbought territory indicate an upward trend for Bitcoin. Breaking above $74,000 could target $80,000, where significant selling pressure may emerge from bearish traders. Critical support levels to watch are the moving averages, with a break below signaling weakened bullish momentum and a potential drop to $65,198 and then $63,000.
Bitcoin ETF inflows remain robust, with total net inflows for Bitcoin spot ETFs reaching $306 million on May 21. Grayscale’s ETF GBTC experienced no net outflow, while BlackRock’s ETF IBIT saw a single-day inflow of $290 million. The total net asset value of Bitcoin spot ETFs currently stands at $58.91 billion.