BTC Price Analysis: This is the reason why BTC surged 15% in 4 days
One of the main drivers of the recent pump in BTC is the expectation of the launch of the ETH ETF in the US next week. This development is expected to enhance institutional interest and confidence in the broader cryptocurrency market, indirectly benefiting BTC as the market leader.
According to reports, the ETH ETF is expected to launch on July 23, with major asset management companies such as BlackRock and VanEck leading the way.
With the approval of the Ethereum ETF by the Securities and Exchange Commission in the United States, the demand for BTC ETF has attracted more and more long positions in the past week. The chart above shows that during the market downturn on July 5th, the active BTC ETF currently holds a cumulative balance of 870,700 BTC.
But as of July 16, the BTC ETF's holdings have reached 878,830 BTC. This means that in just the past 10 days, the BTC ETF has purchased an additional 8,100 BTC, worth about $515 million.
This confirms the position: as the launch date of the ETH ETF approaches, the demand for BTC ETF is increasing. If this market trend continues in the next few days, the BTC price may continue to follow the current pump trajectory and reach $70,000.
In addition, the positive transformation of the macroeconomic environment in the United States has also played a crucial role in the sustained pump of Bitcoin prices. The latest non-farm payroll data exceeded expectations, indicating a strong job market and a resilient economy.
In addition, recent consumer price index (CPI) data shows that the inflation pump rate is slower than expected, easing concerns about the Fed's aggressive monetary tightening policy.
Two indicators showing low inflation pressure indicate that the Fed may now be more likely to cut interest rates, which will create a favorable environment for risk assets such as BTC.
The recent bullish trend of BTC is impressive, with prices reaching a peak of $65,007 on July 16, 2024. A pump of 15% in the past four days highlights the strong buying interest in BTC in the market. The technical indicator on the chart indicates that although BTC may experience some fluctuations, it may continue to pump.
The Chande Momentum Oscillator (ChandeMO) has pumped significantly to 71.52, indicating a strong bullish momentum. This pump reflects increasing buying pressure and the pump trend may continue.
The average true range (ATR) is 2,431.53, indicating an intensified Fluctuation, which is common during periods of violent price Fluctuation. This indicates that although BTC may face some Fluctuation, the overall trend is still bullish.
In the current dynamics, the immediate support level is around $62,000, which has remained strong during the initial consolidation phase on Tuesday morning.
This level is crucial for maintaining the bullish momentum. On the upside, the first resistance level is at $68,000, with the more significant resistance level at the psychological barrier of $70,000. Breaking through these resistance levels will pave the way for a new all-time high.
Given the current market dynamics, the journey of BTC surging to $70,000 seems hopeful but not without challenges. Investors should closely follow the support level and pay attention to any signs of weakness.
If BTC can maintain its momentum and break through the resistance level of $68,000, it is expected to reach $70,000. However, the rise in ATR indicates that there will be greater volatility in the future.
(Data Source: IBRAHIM AJIBADE)
