HomeCrypto NewsBitcoin did not resist USD $66,000, but this analyst believes that it...

Bitcoin did not resist USD $66,000, but this analyst believes that it will soon return to its ATH

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By Hannah Perez

Bitcoin rallied above USD $66,000 but failed to stay on the mark despite the favorable winds for the cryptocurrency market. Despite this, the QCP Capital team anticipates that USD $74,000 is approaching.

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  • Bitcoin rose to USD $66,000 but fell again this Thursday, May 16
  • Bullish momentum came amid tailwinds for the cryptocurrency market
  • Inflation Reduced in US, Bitcoin ETFs See Inflows and High-Profile Investors Reveal
  • QCP Capital Expects These Factors to Drive Bitcoin Towards $74,000 High

Bitcoin It reversed the recent bullish trajectory by falling from the newly recaptured mark of USD $66,000.

During Wednesday afternoon, the leading cryptocurrency by market capitalization regained a height of $66,000, last seen in late April. The gains close to 7% were extended during the morning of this Thursday, when Bitcoin It was around USD $66,500. But the momentum was short-lived as the flagship cryptocurrency failed to stay on track.

Bitcoin weekly price chart between May 9 and 16, 2024. Source: CoinMarketCap

Volatility spread to the rest of the digital asset market. Ethereum (ETH), the second largest cryptocurrency, revisited $3,000 before falling slightly and losing the week’s gains. While others registered turmoil, some managed to stay in bullish territory, as is the case with Solarium (SOL) which has increased more than 5% in the last 24 hours.

The rollercoaster moves caused a surge in liquidations on centralized cryptocurrency exchanges. The data from Coinglass show that in the last 24 hours the cryptocurrency market has witnessed liquidations of USD $146 million, with an equal distribution between short and long positions (bearish and bullish bets).

BTC is trading around $65,500 at the time of publishing this article, up 1% on the day and with a gain of 5.23% on the week, according to data from CoinMarketCap.

Bullish winds are perceived in the market

The price action of Bitcoin has been relatively static since the bullish momentum that took prices towards all-time highs (ATH) above $73,000 in March. Since then, the largest and oldest cryptocurrency has failed to return to the peaks, remaining within the $60,000 area. But this could be about to change.

The recent price rally, and the subsequent fall, came amid a series of positive news for the market. This Thursday, it was reported that CME, the world’s largest derivatives exchange, would be preparing to introduce currency trading for the first time. Bitcoin in cash as institutional demand grows.

The news came after it was revealed some of the high-profile financial institutions that have been investing in ETFs. Bitcoin cash in the US

JPMorgan, Wells Fargo, Morgan Stanley and even a US state, have been acquiring stakes in the ETFs of Bitcoin in cash in which he bought the ETFs. Numerous managers and hedge funds have dived in, with Millennium crowned as one of the largest holders with total investments worth almost USD $2 billion.

The ETFs of Bitcoin US spot funds posted their best day in almost two weeks with a net inflow of $303 million on Wednesday as the high-profile players involved in the new class of funds were revealed.

Bitcoin heading back to USD $74,000, he says QCP Capital

Now, the firm’s analysts QCP Capital believe that this and other macroeconomic factors could drive Bitcoin back towards March’s all-time highs in the coming weeks.

The team of QCP Capital highlighted the latest report on the consumer price index (CPI) in the US, which showed signs of a slight cooling of inflation during April. We expect bullish momentum that could take us back to the highs of USD $74,000, wrote the company citing an increase in demand.

The company said there were observed increased purchasing activitywith investors purchasing between 100,000 and 120,000 call options of Bitcoin by December 2024. (A call option is a purchase option that gives the trader the right (not the obligation) to purchase an underlying asset at a pre-set price)

Institutional demand for BTC continues to grow, with large asset managers Millennium and Schonfeld investing approximately 3% and 2% of their AUM in the BTC Spot ETF“he added QCP Capitalhighlighting the confluence of favorable conditions for the cryptocurrency market that are possibly contributing to the price resurgence.

The stars appear to be aligning on this breakout, with significant sovereign and institutional adoption, lower inflation, and upcoming US elections.

Various analysts, including the team of Bernsteinhave agreed that Bitcoin could resume its upward trajectory as ETFs Bitcoin attract more institutions and that the product group resumes the energetic pace of entries. Among the target prices, several have pointed to over USD $100,000 as the new ATH for this bullish cycle.


Article by Hannah Estefanía Pérez / DailyBitcoin

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