Bitcoin, has surged above $72,000 on growing optimism that the spot Ethereum ETF will be approved. However, this upward momentum slowed down and the BTC price fell below $ 70,000 due to intense selling pressure.
Bitcoin Price Consolidation Continues
By analyzing Bitcoin’s current market dynamics, Rekt Capital suggests that a weekly close above around $71,500 could trigger its breakout from the Reaccumulation Range. However, historical data shows that BTC is likely to consolidate in this range for a few more weeks.
Rekt Capital states that a prolonged consolidation will help Bitcoin realign with historical halving cycles. The current cycle acceleration clocks in at approximately 190 days, an improvement from the 260-day acceleration in mid-March when BTC reached new highs.
Investors are eager for a breakout, but such a move could lead to an earlier top in Bitcoin’s bull market, accelerating the cycle. On the other hand, a prolonged consolidation could extend the duration of the bull run by supporting alignment with past halving cycles.
“History generally shows that we should expect a long period of consolidation,” says Rekt Capital, “but Bitcoin could once again buck historical trends with a weekly close above the $71,500 range.” If this happens, Bitcoin priceIt may trigger a rally that will take the price to $100,000 and above.
On-Chain Indicators Are Strong
Popular crypto analyst Ali Martinez highlighted the accuracy of the TD Sequential indicator in predicting Bitcoin price movements on the one-hour chart. Martinez notes that the indicator is currently giving a buy signal and Bitcoin (BTC) is ready to make a jump.
On the other hand, Bitcoin holders are not willing to sell their coins even as the price rises above $70,000. Crypto analyst Ki Young Ju observes that Bitcoin holders tend to hold onto their assets rather than sell them. This change shows that Bitcoin is now perceived as a store of value rather than just a trading asset.
In the short term, the key support level for Bitcoin will be $67,500. Maintaining this level could trigger a rally in the price towards $74,500. However, if BTC price fails to hold this support, it could decline to $64,000.
Another positive development is that inflows into Bitcoin ETFs continue to remain strong. On May 21, total net inflows into Bitcoin spot ETFs were recorded at $306 million, marking seven consecutive days of positive inflows. While there was no net outflow for Grayscale’s ETF GBTC, BlackRock’s ETF IBIT saw inflows of $290 million in a single day. The total net asset value of Bitcoin spot ETFs stands at $58.910 billion.
