Bitcoin Will Explode If Bulls Break The “Fuse” At $72,000
06 June 2024 - 12:00PM
NEWSBTC
Bitcoin’s price has risen roughly 2% in the past 24 hours, trending
above $70,000, a psychological level. As bulls prepare for more
gains, Willy Woo, an on-chain analyst, believes the coin could soar
even higher after breaking above the all-important resistance level
at $72,000. Will Bitcoin Soar To $75,000 Due To A Short Squeeze?
Even after the spike on May 20 lifted the coin above $66,000 after
days of lower lows, taking Bitcoin to $56,500, bulls didn’t follow
through. As things stand now, Bitcoin is within a broader range,
capped at $72,000, the first local support, and $73,800, the
all-time high. Related Reading: Bitcoin Volatility Reaches Historic
Low: Calm Before A 500% Bullish Storm? However, a breach would be
significant considering the significance of $72,000, a level that
has only been retested but not broken in several weeks. One
explanation for potential price expansion is that a breakout,
ideally with rising volume, might signal the start of another leg
up, drawing demand. For Woo, closing $72,000 could see prices fast
expand, even breaking $75,000 because of a short squeeze. Once
bulls pierce and close above this level of interest, there would be
a wave of liquidations, where many short positions are forced to
close, driving prices higher. Based on Woo’s analysis, roughly $1.5
billion worth of short positions will be liquidated “all the way up
to $75,000.” If this happens, then it is highly likely that Bitcoin
will register new all-time highs roughly seven weeks after Halving.
Inflow To Spot BTC ETFs Rising, Demand Will Only Continue Rising
Underpinning this bullish sentiment is the impressive surge in
institutional inflows into spot Bitcoin exchange-traded funds
(ETFs) on June 4. According to sosovalue data, spot Bitcoin ETF
issuers bought $886.6 million worth of BTC yesterday. Fidelity
bought $378.7 million of BTC, while BlackRock, behind the largest
spot BTC ETF, bought $274.4 million of the coin. Bitwise also made
a substantial demand, adding $61 million of BTC. Interestingly,
Grayscale also saw inflows, adding $28.2 million of BTC on behalf
of its clients. This influx was the second-highest daily inflow
volume since the launch of spot Bitcoin ETFs in January 2024.
Related Reading: Shiba Inu Burn Rate Flatlines With 99% Crash, End
Of The Road For SHIB? With this wave of institutional demand,
Bitcoin is above $71,500. Most importantly, prices remain above
$70,000, confirming the bull spike from the middle BB on June 3.
The demand for these complex derivatives will only increase.
Yesterday, the Thailand Securities and Exchange Commission (SEC)
approved the country’s first spot Bitcoin ETF. The product will
only be accessible to wealthy and institutional investors. The
green lighting comes after a similar product went live in
Australia. Feature image from DALLE, chart from TradingView
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