Bitcoin (BTC) has surged above the $70,000 mark, reaching a six-week high. Traders should have taken advantage of the recent dip below $70,000. According to TradingView, Bitcoin reached a price level of $71,401 on May 20, the highest since April 9.
As Bitcoin surpassed the psychological milestone of $70,000, the funding rate has also increased. Coinglass reported that Bitcoin’s funding rate rose to 0.0187%, the highest level since April 9. This suggests that most traders are taking long positions on BTC.
A positive funding rate indicates that traders are using leverage to buy Bitcoin. Prior to the rally to $70,000, funding rates had remained below 0.01% for the past month, indicating that buyers were gaining confidence.
Technical analysis of Bitcoin’s price also supports further upward movement. The four-hour Bitcoin chart recently showed an inverse head-and-shoulders pattern, which is often seen as a bullish trend reversal signal. Crypto analyst Moustache believes that this pattern could indicate more upward momentum for Bitcoin.
Fractal analysis, which looks for repeated chart patterns, also suggests that Bitcoin’s current rally could continue. The weekly chart shows similarities to Bitcoin’s rally in November 2021, when it rose from $31,000 to $69,000. If this pattern repeats, Bitcoin could see more upside momentum in the coming weeks.
Furthermore, Bitcoin’s price trajectory is similar to the 2017 bull run, according to analyst Jelle. Institutional inflows into US Bitcoin exchange-traded funds (ETFs) have also turned positive. After three weeks of net outflows, ETFs saw two consecutive weeks of positive inflows. This institutional investment has played a significant role in Bitcoin’s rally to new all-time highs.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.