Bitcoin Price Analysis: Here’s Why BTC Surged 15% in 4-Days
thecryptobasic.com 16 July 2024 20:38, UTC Bitcoin price surged to a peak of $65,007 on July 16, 2024, marking a 15% increase within the last four trading, market data trends highlight the main catalysts behind the renewed bullish momentum.
Bitcoin ETFs Invest $515M as ETH ETFs Launch Nears
One of the primary drivers behind Bitcoin’s recent rally has been the anticipation of Ethereum ETFs launching in the U.S. next week. This development is expected to enhance institutional interest and confidence in the broader cryptocurrency market, indirectly benefiting Bitcoin as the market leader.
According to Bloomberg, the Ethereum ETFs are now due to launch on July 23, with several major asset managers, including BlackRock and VanEck, as front-runners.
In response to the green light from the US SEC regarding Ethereum ETFs’ impending launch date, the Bitcoin counterparts have attracted increased demand over the past week. The chart above shows that the active Bitcoin ETFs currently held a cumulative balance of 870,700 BTC during the market dip on July 5.
But at the time of writing on July 16, the Bitcoin ETFs holdings had reached 878,830 BTC. This reflects that the Bitcoin ETFs have acquired an additional 8,100 BTC worth approximately $515 million within the last 10 days alone.
This affirms that stance Bitcoin ETFs are increasing their demand for BTC as the Ethereum ETF launch date draws closer. If this market trend persists in the coming days, Bitcoin price could continue on its current upward trajectory towards $70,000.
Moreover, the positive shift in the US macroeconomic environment has also played a crucial role in bolstering Bitcoin’s ongoing price rally. The latest Non-Farm Payroll (NFP) data exceeded expectations, indicating a strong job market and economic resilience.
Additionally, the recent Consumer Price Index (CPI) data revealed a slower-than-expected rise in inflation, which has alleviated concerns about aggressive monetary tightening by the Federal Reserve.
Both indicators signaling lower inflation pressures suggest that the US Fed may now take a more likely to cut interest rates which would create a favorable environment for risk-on assets like Bitcoin.
Bitcoin Price Forecast: Rocky Road to $70k
Bitcoin’s recent bullish momentum has been impressive, with the price peaking at $65,007 on July 16, 2024. This 15% surge over the past four days highlights the strong buying interest in the market. The technical indicators in the chart suggest that Bitcoin might continue its upward trajectory, albeit with some volatility.
The Chande Momentum Oscillator (ChandeMO) has risen sharply to 71.52, indicating strong bullish momentum. This uptick reflects increasing buying pressure and a potential continuation of the upward trend.
The Average True Range (ATR) stands at 2,431.53, signaling heightened volatility, which is typical during periods of strong price movements. This suggests that while Bitcoin may face some fluctuations, the overall trend remains bullish.
Within the current dynamics, the immediate support level is around $62,000, which has held firm during the initial consolidation phase on Tuesday morning.
This level will be critical for maintaining the bullish momentum. On the upside, the first resistance level is at $68,000, with a more significant barrier at the psychological $70,000 mark. Breaking through these resistance levels would pave the way for new all-time highs.
Given the current market dynamics, Bitcoin’s journey to $70,000 appears promising, though not without challenges. Investors should monitor the support levels closely and watch for any signs of weakness.
If Bitcoin manages to sustain its momentum and break through the $68,000 resistance, $70,000 could be reached. However, the heightened ATR suggests intense volatility ahead.
