Originally published on: May 20, 2024
Bitcoin is gearing up for another strong week as it surges back to $67,000 with the return of TradFi markets. The cryptocurrency is inching closer to breaking through the final resistance levels at $69,000 and $73,800, setting the stage for a potential bullish continuation.
Market participants are closely watching United States economic policy cues, with the Federal Reserve set to release minutes from its May meeting and U.S. unemployment data on the horizon. Traders are growing increasingly confident that a local bottom has been established, signaling a potential uptrend after a two-month consolidation period.
Despite the rising prices, sentiment remains subdued compared to the previous peak in March, hinting at a more sustainable journey towards price discovery. This shift in sentiment suggests that Bitcoin could be on track for further gains in the coming days.
One of the key factors fueling Bitcoin’s growth is the surge in demand for ETFs, which have purchased 3 times the new BTC supply. These ETFs have bought 21,700 BTC ($1.5B) in the month to date, highlighting a renewed interest in the cryptocurrency market.
The increased demand for Bitcoin ETFs comes at a time when exchange BTC reserves are at their lowest levels since 2017, indicating a supply shortage that could further boost prices. In addition, the Crypto Fear and Greed Index shows a moderate level of greed, signaling a bullish sentiment without reaching excessive levels.
As Bitcoin continues its upward trajectory, it is crucial for buyers to remain cautious and avoid getting caught up in FOMO (fear of missing out). By staying informed and conducting thorough research, investors can make well-informed decisions to capitalize on the current market conditions.
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