Bitcoin (BTC) Price Surges to $71k: New All Time High Soon?

TLDR

Bitcoin’s price is currently hovering around $71,000, with its average price across 5-day, 30-day, and 50-day periods falling within a tight 5% range, indicating low volatility and the potential for a price breakout in either direction.
Bitcoin is currently trading above its three Simple Moving Averages (SMAs), which is a favorable sign for traders and suggests that the moving average could serve as a new support level if the price falls.
The recent surge in Bitcoin’s price comes on the heels of massive inflows into US spot Bitcoin ETFs, with the funds collectively witnessing $887 million in net inflows, marking the second-highest such inflow ever recorded.
Glassnode data suggests that long-term Bitcoin holders are still holding onto a large portion of unrealized profits, and they could cause heavy selling if Bitcoin reaches a new all-time high.
Galaxy Digital CEO Mike Novogratz believes Bitcoin’s risk is skewed to the upside and could end the year at $100,000 if it overcomes the $73,000 all-time high around next week.

Bitcoin’s price has been hovering around the $71,000 mark, with traders and investors closely watching for signs of a potential breakout.

The convergence of Bitcoin’s average price across three different time frames—5-day, 30-day, and 50-day periods—has fallen within a tight 5% range, signaling low volatility and raising the chances of a significant price move in either direction.

The recent surge in Bitcoin’s price comes amidst massive inflows into US spot Bitcoin exchange-traded funds (ETFs). Data from HODL15Capital shows that these funds collectively witnessed $887 million in net inflows, marking the second-highest such inflow ever recorded.

Leading the charge were the Fidelity Wise Origin Bitcoin Fund with $378 million and BlackRock’s iShares Bitcoin Trust with $275 million.

This milestone in ETF inflows marks a significant turning point for Bitcoin, as it signals a growing demand from institutional investors and a broader acceptance of the cryptocurrency as a legitimate asset class.

The surge in demand has also defied skeptics who doubted the appeal of Bitcoin ETFs to retail investors.

Despite the positive sentiment surrounding Bitcoin’s price action, data from blockchain analytics firm Glassnode suggests that long-term holders are still holding onto a large portion of unrealized profits.

This could potentially lead to heavy selling pressure if Bitcoin reaches a new all-time high, as these investors may be tempted to take profits.

However, Galaxy Digital CEO Mike Novogratz remains bullish on Bitcoin’s prospects, believing that the cryptocurrency’s risk is skewed to the upside.

He predicts that Bitcoin could end the year at $100,000 if it manages to overcome the $73,000 all-time high around next week.

Novogratz cites increased regulatory clarity and the potential approval of the FIT21 bill by the Senate as major catalysts that could bring more prominent traditional players into the ecosystem, further boosting Bitcoin’s price.