Bitcoin’s price has the potential to surge to new record highs if it can successfully surpass the critical $67,500 level, according to a report by Markus Thielen, the head of research at 10x Research. The $67,500 mark is currently acting as a significant resistance line for Bitcoin and will likely determine its price movement in the upcoming weeks. Bitcoin has already shown signs of recovery, with a 7.3% increase in the past week. This positive price action is a promising indicator for Bitcoin’s future performance.
Inflows from US spot Bitcoin exchange-traded funds (ETFs) have remained positive for the second consecutive week, with over $200 million in cumulative net inflows. This is a slight decrease compared to the previous week’s $413 million. Prior to the week beginning May 6, Bitcoin ETF net flows had been negative for three straight weeks. Institutional inflows from ETFs have played a significant role in Bitcoin’s recent rally to new all-time highs. By February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the cryptocurrency as it surpassed the $50,000 mark.
Despite these positive developments, Bitcoin still faces significant resistance at the $67,500 level. If it manages to break through this resistance, it could lead to the liquidation of nearly $300 million worth of leveraged short positions across all crypto exchanges.
On a monthly chart, Bitcoin has successfully turned an important resistance into support, indicating potential bullish momentum. This was accompanied by Tether’s minting of $1 billion worth of its stablecoin (USDT) on May 17, bringing the total amount issued this year to $31 billion. This influx of new USDT played a significant role in Bitcoin’s price surge from $27,000 to $73,000.
Tether’s involvement doesn’t end there. The company has announced plans to invest 15% of its net profit in Bitcoin to diversify the backing assets of its stablecoin. Additionally, Tether acquired 8,888 BTC on March 31, making it the seventh-largest Bitcoin holder globally.
Overall, Bitcoin’s price movement in the coming weeks will largely depend on its ability to break through the $67,500 resistance level. Positive inflows from ETFs and Tether’s involvement could further contribute to a potential rally in Bitcoin’s price.