Bitcoin price has continued to face some selling pressure after a brief attempt to cross $72,000 earlier this week.
As of press time, the Bitcoin (BTC) price is trading 2.69% down at a price of $67,536 with a market cap of $1.331 billion. If BTC fails to hold the $67,000 support, it can further drop to $64,000.
Ethereum charged impressively from support at $3,000 to above $3,700. Major altcoins also tapped into the new bullish sentiment and recovered some of the losses incurred in April and early May.
If the ETF is approved, Ethereum is predicted to reach a new all-time, possibly triggering an altcoin season. Bitcoin price hit a new all-time high after the SEC nodded to the ETF in January.
What lies ahead for the cryptocurrency?
Bitcoin has experienced a gradual decline from its weekly high of $72,000 and is currently trading at $67,908 during US business hours on Thursday. This has created a sense of uncertainty in the market, as some speculate whether the correction will persist and push the price down to $60,000, or if the upward trend will resume and propel Bitcoin to a new all-time high of $80,000.
On the bright side, the likely approval of spot Ethereum ETFs could encourage investors to seek more exposure to Bitcoin and leading altcoins. Such an occurrence would translate to a surge in momentum backing a larger breakout in the coming days.
Following weeks of continuous outflows, Bitcoin ETFs have returned to positive territory, indicating a shift in market sentiment. According to data from SoSoValue, the total net inflow on May 22 amounted to $153 million.
BlackRock and Fidelity were the best-performing ETFs with $92 million and $75 million in net inflows respectively. Ark Invest received $3 million in net inflow volume while the rest of the ETFs except Grayscale saw zero volumes. Grayscale is still dealing with outflows, considering the $16 million recorded Wednesday. However, the magnitude of the outflows has reduced significantly.
Bitcoin Price Analysis: Evaluating the Technical Structure Amidst Price Decline
The current decline in Bitcoin’s price is causing support levels to come under pressure. At this point, there is a possibility of a correction below $67,000 during the US trading session. The RSI’s subsequent retreat further confirms the short-term bearish sentiment.
The indicator now holds at 54 from a weekly top of 66 while sliding in the neutral zone. This outlook could be interpreted as a reason to short BTC or liquidate open options, in turn, adding to the selling pressure.
Assistance levels under $67,000 encompass the 20-day Exponential Moving Average (EMA), the downward trend line, and the 50-day EMA. Should sellers persist, a drop to $60,000 remains a possibility.
The resumption of the bullish trend would depend on the approval of spot Ethereum ETFs, support at $67,000, and the ability to reclaim the ground above $72,000. Above this level, bulls could quickly push to $80,000 setting a new precedent for the bull run eyeing $100,000 in 2024.
Bitcoin Price Consolidation
Although the BTC price rallied to $72,000 earlier this week, we’re still not out of the Bitcoin consolidation phase as reported earlier this week. As per the historical trends and post-halving behavior of Bitcoin, it would still take a few more weeks for Bitcoin to give a fresh breakout and enter the price discovery zone.
Once this happens, the BTC price will be all set to rally to $100,000 by the end of this year.
Short-Term vs. Long-Term Outlook for Bitcoin
The main thing that everyone is wondering is if they should invest in Bitcoin or not. There’s not really a right or wrong answer. It mainly has to do with personal preferences, as well as the amount of risk you are willing to take.
As we’ve seen throughout Bitcoin’s history, it seems as if the chances of it rising or falling are about equal to each other. Maybe the recent new all-time high proves that it’s in it for the long haul, but we can’t exactly guarantee that.
From both a short-term and long-term perspective, Bitcoin should be looked at as a highly volatile investment.
