Bitcoin Surges Above $71,000 as New Demand Wave Builds Momentum
This week, Bitcoin broke out of its tight trading range to surpass $71,000, largely fueled by strong demand through ETFs. With net inflows of approximately $1.2 billion over the last week, the leading cryptocurrency is experiencing a resurgence in buyer interest, indicating a potential new wave of demand for Bitcoin.
Factors Driving New Demand for Bitcoin
- Inflows of around $1.2 billion in net new inflows through ETFs have boosted Bitcoin’s price and led to increased buyer interest in gaining exposure to the asset.
- The recent price surge has brought short-term investors back into a profitable position, reducing the risk of a shift in sentiment from bullish to bearish.
- CryptoQuant predicts a consolidation phase in the $60,000 to $70,000 range in the near term due to the lack of major positive economic catalysts driving significant capital influx.
- The approval speculation of spot Ether ETF is fueling market resurgence, pushing the total market cap above $2.55 trillion.
Critical Zone for Bitcoin’s Price Action
Renowned crypto analyst Ali Martinez highlights very “minimal resistance” in the $70,180 to $70,600 price range, where over 450,000 Bitcoin addresses bought around 273,000 BTC, creating a potential supply zone.
If Bitcoin successfully breaks through the $70,180 to $70,600 range, the path forward is likely higher. However, if selling pressure halts the rally within this range, it could temporarily limit further upside potential.
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