Bitcoin (BTC) surpassed the $70,000 threshold for the first time in six weeks, prompting traders to consider the benefits of buying during the dip below $70,000. On May 20, Bitcoin reached a six-week high of $71,401, a level not seen since April 9. As the cryptocurrency recovered above the psychological $70,000 mark, the funding rate also increased. The funding rate rose to 0.0187%, the highest level since April 9, indicating that most traders are taking long positions on BTC. This rise in funding rates suggests that Bitcoin buyers are gaining more confidence. Technical analysis of the BTC price reveals an inverse head-and-shoulders pattern on the four-hour chart, which signals a potential trend reversal from bearish to bullish. This pattern could indicate more upward momentum for Bitcoin. Furthermore, a fractal analysis suggests that Bitcoin’s current rally on the weekly chart resembles its rally in November 2021. If these chart patterns repeat, Bitcoin may experience further upside momentum in the weeks to come. Additionally, there have been two consecutive weeks of positive inflows into United States’ spot Bitcoin exchange-traded funds (ETFs), after three weeks of net negative outflows. These institutional inflows into Bitcoin ETFs played a significant role in the current Bitcoin rally to new all-time highs. In February, Bitcoin ETFs accounted for about 75% of new investments in the cryptocurrency when it surpassed the $50,000 mark. It’s important to note that this article is for informational purposes only and does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.
Unveiling the 4 Compelling Reasons to Consider Investing in Bitcoin Below $70K