Recently, the value of Bitcoin continued to reach all-time highs, reaching exactly $71,000. Bitcoin price is currently experiencing a significant increase, further strengthened by the innovative “ETF effect” and positive market sentiment ahead of the upcoming halving. Here are the details…
Bitcoin rose with halving support
As expected, Bitcoin’s value experienced a significant acceleration on Friday, temporarily breaking the $69,000 barrier and reaching new highs at $71,000. Despite calls for a pullback, the major cryptocurrency remains strong, especially given the significant rally that started from lows below $40,000 in January. However, a significant hurdle between $69,000 and $70,000 represents a question mark in the current context.
It’s not entirely clear why some investors are selling at this stage of strong growth, but it’s plausible that much of the selling pressure is coming from legacy miners. After a volatile week initially characterized by a significant rise above $69,000 and a rapid decline below $60,000, bullish supporters are back strongly. Bitcoin’s ability to reach an all-time high of $70,000 in the near future points to continued potential support of the pre-halving rally.
Is there FOMO behind the record?
“FOMO” (fear of missing out) aims to capture retail investors and other small participants with each new record Bitcoin reaches. Additionally, strong support has been consolidated in the $65,053 to $67,008 range, according to blockchain analysis by IntoTheBlock. Approximately 802,000 addresses purchased 687,000 BTC at an average price of $65,960, confirming Bitcoin’s bullish perspective.
IOMAP reveals the absence of significant resistance zones and indicates that the rally may strengthen above $70,000 in the coming days. On-chain flows from exchanges are increasing, highlighting the positive sentiment in the market. After a slight correction of 18,670 BTC on February 18, the total exchange volume increased to 34,410 BTC.
Fund outflow from stock markets is increasing
As we know, investors prefer to keep their BTC out of exchanges when they do not intend to sell it in the short term. The increase in outflows from exchanges could therefore indicate a decrease in selling pressure, which could support the Bitcoin price into another upward phase. Overall, this factor helps shape Bitcoin’s long-term prospects positively.
Nearly sixty days since spot Bitcoin ETFs were approved by the United States Securities and Exchange Commission (SEC), exchange-traded funds led by BlackRock’s IBIT have surpassed all expectations. Indeed, ETFs have reached milestones that are years ahead of their gold counterparts. Demand for BTC is growing at a staggering rate, with total net inflows of $9.37 billion according to SoSoValue.
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For the rest of the article, Bitcoin Broke a Record Again: It Exceeded That Level! What’s Next?