Bitcoin rally above $67.5K could spark new record highs, says 10x Research

News Feed - 2024-05-20 05:05:27

Zoltan Vardai12 minutes agoBitcoin rally above $67.5K could spark new record highs, says 10x ResearchBitcoin could be on the brink of a rally to new record highs, but it still has one significant resistance to overcome, according to Markus Thielen.115 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin"s price could start rallying to new all-time highs if it manages to decisively rise above the crucial $67,500 mark.

The $67,500 level is acting as a significant resistance line for Bitcoin (BTC), which could determine its price action in the coming weeks, according to a May 20 report by Markus Thielen, the head of research at 10x Research.

Thielen wrote:“A breakthrough above $67,500 could potentially lead to new all-time highs, a scenario that our Bitcoin ETF model predicts.”

The predictions come after Bitcoin staged a significant recovery and recovered above the $66,000 psychological mark. The world’s first cryptocurrency is up over 7.3% during the past week, according to TradingView.BTC/USDT, 1-day chart. Source: TradingView

Last week’s price recovery is a promising sign for Bitcoin’s price action, added Thielen:“A breakthrough above $67,500 could potentially lead to new all-time highs, a scenario that our Bitcoin ETF model predicts.”

Inflows from the United States spot Bitcoin exchange-traded funds (ETFs) remained positive for the second consecutive week, as the ETFs amassed over $200 million worth of cumulative net inflows, which is just half compared to the previous week’s $413 million, according to Dune.

Before the week beginning May 6, Bitcoin ETF net flows had been negative for three consecutive weeks.Bitcoin ETF Net Flows, Weekly, Source: Dune

Institutional inflows from ETFs were a significant part of the current Bitcoin rally to new all-time highs. By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.

However, Bitcoin faces significant resistance at the $67,500 mark. A potential move above would liquidate nearly $300 million worth of leveraged short positions across all crypto exchanges, according to CoinGlass.Bitcoin Exchange Liquidation Map. Source: CoinGlass

Related:Over 80% of recent Binance token listings are bleeding redTether’s newly-minted USDT could boost Bitcoin price

On the monthly chart, Bitcoin has flipped an important resistance into support, which could signal more bullish momentum, according to a May 16 X post by popular crypto analyst Rekt Capital.BTC/USD, 1-month chart. Source: Rekt Capital

The move happened as Tether minted $1 billion worth of Tether USD (USDT) on May 17, bringing its yearly total to $31 billion of newly issued stablecoins.

The newly minted USDT was a big reason why Bitcoin price climbed from $27,000 to $73,000, according to a May 17 post from Lookonchain:Bitcoin chart with newly-minted USDT. Source: Lookonchain

Tether could also directly contribute to Bitcoin’s rally. The company said it would invest 15% of its net profit in Bitcoin to diversify the stablecoin’s backing assets.

Tether acquired 8,888 BTC on March 31, worth $618 million, making the stablecoin issuer the seventh-largest Bitcoin holder in the world, according to Bitinfocharts.

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