Cryptocurrency Market Sentiment Improves as Bitcoin Breaks $67,000
According to data from Bitpush, the cryptocurrency market showed an upward trend at the end of this week, with Bitcoin breaking $67,000 for the first time since April 23, triggering a market rebound. Ethereum (ETH) rose by 5.3%, and Solana (SOL) rose by 7.7%. The total market capitalization of cryptocurrencies increased by 3% to reach $2.42 trillion.
Shitcoins performed positively this week, with only 12 out of the top 200 tokens experiencing a decline, and none of them exceeding a 3% drop. The 0x Protocol (ZRX) led the DeFi projects with a 16.6% increase, followed by Biconomy (BICO) with a 16.5% increase, and Gnosis (GNO) with a 13.6% increase. Beam (BEAM) had the largest decline, dropping by 2.9%, followed by Notcoin (NOT) with a 2.1% drop, and Core (CORE) with a 2% drop.
The overall market capitalization of cryptocurrencies is currently $2.42 trillion, with Bitcoin’s dominance rate at 54.4%.
In the traditional market, the three major U.S. stock indices reached new highs earlier this week, with mixed results at the end of the week. The S&P 500 and Dow Jones indices rose by 0.12% and 0.34% respectively, while the Nasdaq index fell by 0.07%. The Dow Jones index closed above 40,000 points for the first time in history.
Golden Cross “Coming Soon,” Bullish Signs Emerge
Bitcoin surged above $66,000 earlier on Friday, recovering from the decline below $65,000 on Thursday. Secure Digital Markets analyst stated, “The price started to retreat at our resistance target of $67,500. As long as Bitcoin remains above the 50-day moving average, we expect the upward momentum to continue.”
Several institutional investors disclosed significant BTC ETF holdings this week. For example, Morgan Stanley reported an investment of $269 million in Grayscale’s GBTC. Millennium Management, managing assets worth $64 billion, disclosed a $2 billion position in the BlackRock iShares Bitcoin Trust (IBIT) as of the end of the first quarter. Elliott Management, managing assets worth $70 billion, also disclosed a substantial Bitcoin ETF holding. The Wisconsin State Investment Board, which manages retirement assets, holds approximately $100 million worth of shares in the BlackRock IBIT.
Market analyst Mustache also emphasized Bitcoin’s moving averages, pointing out that a golden cross on the 12-hour chart is “coming soon.” He stated on X platform, “BTC Golden Cross (12-hour chart) is coming soon. The last bullish cross occurred six months ago, and since then, Bitcoin has risen by over 170%.”
A golden cross occurs when the short-term moving average is above the long-term moving average. The last time this cross occurred was in October, and in the following four months, Bitcoin rebounded from below $30,000 to nearly $74,000, reaching a new all-time high.
Data provided by Farside showed that the inflow of funds into spot Bitcoin exchange-traded funds (ETFs) extended to four days on Thursday, highlighting that Bitcoin’s price tends to perform well when ETFs record net inflows.
Eric Balchunas, Senior ETF Analyst at Bloomberg, stated that the recent inflows have raised the total managed assets to $12.3 billion since its launch, which he called a “key number.” He said, “Bitcoin ETF has had two consecutive weeks of $130 million in inflows, offsetting all negative flows in April, bringing it back near its net high of $1.23 billion since launch. This key number can be calculated by inflows and outflows (which is normal).”
Balchunas stated, “The past two months show why it’s best not to get emotional about flows. They are part of the ETF life. They bring long-term positive returns. The amounts on both sides are small relative to AUM, maybe 1-2%, so if you think about it, it’s not a forever outflow or inflow.”
Cryptocurrency analyst and trader Kevin Svenson stated that the reverse head and shoulders pattern on the Bitcoin chart is sending a bullish signal similar to mid-March, just before its rebound to a new all-time high.
He said, “BTC is breaking out of the reversal bottom pattern, so I want to say that this is indeed bullish… Bitcoin is also above the downtrend line of the Relative Strength Index (RSI) on the daily chart. This is just a signal for further upward movement. It’s no different from this area in early 2024 when it went sideways, faced resistance from the downward sloping RSI, and then broke through and set a new all-time high. Bitcoin is going through the exact same scenario again and could push for a new all-time high.”
Svenson stated that Bitcoin is in the fourth phase of the parabolic curve pattern, which could reach a peak of $90,000. He reminded traders that in this bull market cycle, considering the recent completion of the halving, the price of BTC may exceed $90,000, but a correction may be needed before reaching that number.
Svenson concluded, “This could mean that Bitcoin will first reach our parabolic trend target of $90,000 and then see the trend collapse due to sideways consolidation. It will then push higher, creating a larger and broader parabolic trend.”
Author: BitpushNews Mary Liu