Bitcoin’s price has surged above $71,000 due to the excitement surrounding spot Ethereum ETFs. However, aggressive buyers are now being trapped at critical resistance levels, leading to a decline in market sentiment over the past 24 hours. BTC is currently consolidating within a range-bound zone, but analysts believe this consolidation is temporary. They expect the price to remain above a key area of interest, which could potentially result in a rebound or new all-time high in the near future.
Despite initially climbing above $72,000, Bitcoin’s price slipped back under $70,000 due to selling pressure. On-chain data provider Rekt Capital suggests that a weekly candle close above approximately $71,500 could trigger a breakout from its Re-Accumulation Range. However, historical patterns indicate that Bitcoin may consolidate within this range for several more weeks.
Extended consolidation could align Bitcoin with historical halving cycles, with the current cycle acceleration at around 190 days. This is an improvement from the 260-day acceleration observed in mid-March when Bitcoin reached new all-time highs. While investors may be eager for a breakout, such a move could lead to an accelerated cycle and an earlier peak in Bitcoin’s bull market. Conversely, prolonged consolidation would support synchronization with past halving cycles, potentially prolonging the duration of the bull run.
According to analyst Jelle, Bitcoin is holding above a critical support zone of $68K-$69K, indicating potential strength in the market. Jelle predicts that Bitcoin will consolidate within this range for a while before reaching new all-time highs. Furthermore, the upcoming news about the Ethereum ETF is expected to have a significant impact on market trends.
Traders have been convinced by Bitcoin’s 14% surge over the past week, with many considering it a “real deal market pump.” They do not anticipate another correction until Bitcoin reaches $90,000. Analysts believe that both fundamentals and technicals are aligning, and the previous price drop from the all-time high was a necessary correction for higher prices in the future.
The TD Sequential indicator is currently presenting a buy signal on the one-hour chart, suggesting that Bitcoin is poised for a rebound.
Bitcoin has been trading in a bullish range around $70,000, with a potential breakout to the upside. However, bearish traders are defending against a surge above Fibonacci channels. The current price is aiming for consolidation below $70K after being rejected above $71,000. Bitcoin is currently priced at $70,079, reflecting a 1.2% decrease in the last 24 hours.
The rising 20-day EMA and the RSI below the overbought territory indicate an upward trend. If Bitcoin surpasses $74,000, it could target $80,000, although significant selling pressure may occur at that level.
On the downside, the moving averages serve as critical support levels. A break and close below these averages would suggest weakened bullish momentum and a potential drop to $65,198 and then to $63,000.
A positive factor is the strong inflow of Bitcoin ETFs. On May 21, the total net inflow for Bitcoin spot ETFs reached $306 million, marking seven consecutive days of positive inflows. 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.
