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As Bitcoin momentarily reclaims $66k, the bullish sentiments have peaked, and investors are anticipating a breakout rally. Will Bitcoin surpass $70k?
With a 5.12% surge last night, Bitcoin made a bullish engulfing candle to mark a 24-hour high of $66,479. After registering the highest price in the last 16 days, Bitcoin is currently trading at $65,485, with an intraday pullback of 0.89%. Thus, the biggest crypto reflects a bullish exhaustion.
Will the sudden exhaustion of a bullish trend lead to Bitcoin’s downfall, or does a breakout rally await? Let’s find out now.
Bitcoin Teases a Channel Breakout Rally
From the recent 7-day low of $58,867, Bitcoin has increased by 11.18%, reflecting a sharp recovery. Currently, the recovery run challenges the overhead resistance trendline of a channel pattern.
The channel pattern completes a bullish flag in motion, currently holding Bitcoin’s fate. A bullish breakout of the overhead trendline will likely unleash the trapped momentum for the start of a crypto bull market.
However, the intraday pullback warns of a minor pullback before the highly anticipated breakout rally. With an uptick in the 20-day EMA, the 50-day and 100-day EMA are on the verge of giving a bullish crossover. Hence, the dynamic average lines are flashing a buy signal.
Furthermore, the daily RSI line recovers from under the 50% line and is on the verge of hitting the overbought boundary line. This leads to an uptick in the 14-day average RSI line. Hence, the momentum indicator bolsters the possibility of an uptrend.
US Bitcoin ETFs Collect $555M Net Inflow
Amid yesterday’s massive price jump, the U.S. spot Bitcoin ETF market witnessed a massive net inflow of $555.86 million. The cumulative total net inflow in the Bitcoin ETF stands at $19.36 billion.
A massive inflow has registered the highest influx in the U.S. spot Bitcoin ETF market since June 5. Moreover, this marks the eighth biggest inflow since the launch.
Fidelity’s FBTC led the pack with an inflow of $239.25 million, followed by Bitwise’s BITB with $100.20 million and BlackRock’s IBIT with $79.51 million. None of the listed ETFs registered an outflow, with a net zero inflow in BTCW and DEFI.
Thus, with the growing inflows, the institutional support for Bitcoin grows daily.
Will Bitcoin Create a New All-time High?
Based on the Fibonacci retracement, Bitcoin has surpassed the 50% Fibonacci level at $63,568, with the next resistance at the 78.60% level at $69,032. By the end of this month, the channel pattern’s potential breakout rally will likely challenge Bitcoin’s all-time high of $73,794.
The next potential all-time high level is near the $78,318 or the 1.272 Fibonacci level. Meanwhile, if extended, the intraday pullback in Bitcoin can find support at the 50% Fibonacci level at $68,568.