Bitcoin (BTC) soared past its recent downtrend, shooting above $66,000 on Wednesday with a robust 6.6 percent surge within 24 hours. By Thursday’s early Asian session, the leading cryptocurrency was trading around $65,972, igniting excitement among investors.
This sudden surge was fueled by US inflation data, particularly the Consumer Price Index (CPI), which consistently revealed lower-than-expected figures.
Global Momentum Fuels Bitcoin’s Rise
The recent Bitcoin price pump has mirrored major global stock indexes, led by the S&P 500, which rallied to a new all-time high in the past 24 hours. The rising traded volume for the spot BTC ETFs shows that institutional investors’ heightened demand for Bitcoin has helped rejuvenate the bullish sentiment.
Institutions Are Taking Notice!
Trading data from the market intelligence platform Santiment further reinforced this narrative. The top seven spot Bitcoin Exchange-Traded Funds (ETFs) recorded a daily traded volume of around $5.65 billion, a level not seen since March 24. Additionally, Hong Kong-based spot BTC ETFs experienced significant cash inflows, indicating an inevitable embrace by mainland China investors, further propelling Bitcoin’s rally.
What Are the Technicals Telling Us?
From a technical standpoint, Bitcoin’s rally surpassed key milestones like the daily 50 Moving Average (MA) and the Relative Strength Index (RSI) on Wednesday. However, sustaining momentum hinges on maintaining consistent closure above the crucial support/resistance level around $67,000.
This validation of the recent reversal is supported by an inverted head and shoulder (H&S) pattern.
Veteran trader Peter Brandt adds weight to the bullish outlook for Bitcoin. Brandt suggests that the cryptocurrency may be on the cusp of a new all-time high. His analysis, rooted in the HSBDP (hump, slump, bump, dump, pump) indicator, hints at further upward movement, fueling optimism within the crypto community.
Feeling FOMO after this Bitcoin pump? There’s still time to join in the action!
