The crypto market is back on its choppy trend as the industry waits on the Securities and Exchange Commission (SEC) to decide on the face of proposed spot Ethereum ETFs. Prices broke out splendidly on Monday after analysts revised their prediction for the approval to a 75% chance from a 25%. Bitcoin price rallied to $72,000 continuing last week’s bullish trend above $67,000.
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’s Next Bitcoin As Bitcoin Price Pulls Back
Bitcoin has gradually retreated from its weekly peak at $72,000 to trade at $67,908 during US business hours on Thursday. This has sent mixed signals in the market, with some wondering if the correction will continue to $60,000 or the uptrend will resume toward a new record high at $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.
After weeks of persistent outflows, Bitcoin ETFs are back in the green, suggesting market sentiment is changing positively. Data from SoSoValue shows the daily total net inflow on May 22 at $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: Assessing The Technical Structure As Price Drops
The ongoing correction in Bitcoin price is putting pressure on support areas. As it stands, a correction below $67,000 is likely during the US session. A subsequent pullback by the Relative Strength Index (RSI) reinforces the short-term bearish outlook.
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.
Support areas below $67,000 range from the 20-day Exponential Moving Average (EMA), the descending trend line, and the 50-day EMA. If sellers do not relent, a breakdown to $60,000 cannot be ruled out just yet.
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.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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