Key Points
- Bitcoin’s price could potentially reach new all-time highs if it surpasses the significant $67,500 resistance level.
- Bitcoin’s recent recovery and positive ETF inflows indicate a promising future for the cryptocurrency’s price action.
Bitcoin’s value could hit new record highs if it can successfully exceed the important $67,500 mark.
This level is proving to be a major resistance point for Bitcoin (BTC), which may influence its price movement in the forthcoming weeks, as stated in a May 20 report by Markus Thielen, the research head at 10x Research.
Bitcoin’s Price Recovery and ETF Inflows
Thielen noted that a surge above $67,500 could potentially result in new all-time highs, a scenario predicted by their Bitcoin ETF model.
This forecast comes as Bitcoin has made a significant recovery, climbing above the psychological barrier of $66,000. The pioneering cryptocurrency has risen over 7.3% in the past week.
The previous week’s price recovery is a positive indicator for Bitcoin’s price movement, added Thielen.
Bitcoin ETFs in the United States saw positive net inflows for the second week in a row, accumulating over $200 million, which is half of the previous week’s $413 million.
Institutional Inflows and Resistance
Institutional inflows from ETFs played a crucial role in Bitcoin’s recent rally to record highs. As of February 15, Bitcoin ETFs represented about 75% of new investment in the largest cryptocurrency as it crossed the $50,000 mark.
However, Bitcoin is facing significant resistance at the $67,500 mark. A potential move above this level could liquidate nearly $300 million worth of leveraged short positions across all cryptocurrency exchanges.
Tether’s newly issued USDT could also boost Bitcoin’s price. On the monthly chart, Bitcoin has turned an important resistance into support, which might indicate more bullish momentum.
This shift occurred as Tether minted $1 billion worth of Tether USD (USDT) on May 17, bringing its yearly total to $31 billion of newly issued stablecoins.
Tether could also contribute directly to Bitcoin’s rally. The company announced it would invest 15% of its net profit in Bitcoin to diversify the stablecoin’s backing assets. On March 31, Tether acquired 8,888 BTC, worth $618 million, making it the seventh-largest Bitcoin holder globally.
