The price of Bitcoin reached 70 thousand dollars as a place and the increase of buying BTC ETF
Bitcoin (BTC) price has increased to the desired $70,000.
Bitcoin charts and spot ETF activity highlight the trend reversal
Analyst “ELI5 of TLDR” noted that most indicators on the chain point to a bull market just beginning. Its latest boost of nearly $60,000 has fueled higher interest, with Farside Investors reporting nearly $950 million in inflows last week, a figure not seen since March.
If this trend continues, BTC may be higher than expected. Currently, BTC is trading within a few hundred dollars of $70,000, the 20-day EMA is at $64,371 and a positive RSI indicates that an upward move is more likely. Overcoming the resistance of $68,000 suggests that the price of BTC is on the way to $73,777, although this level may trigger a strong bearish reaction.
Conversely, a break below the moving averages could indicate a bearish decline that could lead to a drop to $59,600 and $56,552.
A change in US monetary policy will increase the price of Bitcoin
In a broader economic context, Bitcoin's 51% year-to-date gain reflects investors' expectations of a US monetary expansion, with the M2 monetary base exceeding $21.0 trillion by April 2024.
This increase in money supply signals that inflation will continue to rise despite a period of hesitation in spending by companies and individuals. The United States Federal Reserve's strategies to control inflation and avoid recessions may affect inflation and, consequently, the attractiveness of finite assets such as Bitcoin.
Related: ETFs Buy 3X New BTC Supply — 5 Things to Know in Bitcoin This Week
As Bitcoin nears all-time highs, the currency's reserves have fallen in seven years
Adding to the worrisome sentiment, the exchange's BTC reserves fell to a seven-year low, with 1,918,417 BTC available on May 19 on major trading platforms, according to CryptoQuant data, a significant decrease compared to last year.
This shortage, combined with the recent stripping event that halved the new supply available from miners, makes it difficult to justify the position on Bitcoin.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
