Bitcoin Showing Strength:  Here Could Be When the BTC Price May Kick-off the Next Upswing to $75,000

The post Bitcoin Showing Strength:  Here Could Be When the BTC Price May Kick-off the Next Upswing to $75,000 appeared first on Coinpedia Fintech News

The latest price action suggests the current consolidation of the Bitcoin price is expected to continue for some time. Besides, the crypto markets on the whole are consolidating, which suggests the bulls continue to hold significant dominance. Hence, market participants may expect a fresh upswing but here is when it could occur.

The major reason for the bull run is speculated to be the spot Bitcoin ETF, which recorded millions and billions of inflows after it was launched. Currently, the volume held by the institutions offering spot ETFs like Blackrock, Grayscale, etc. has soared beyond 760K, which is 4% of the entire supply. Hence, the inflows and outflows of the ETFs will have a major impact on the BTC price.

The BTC price witnessed a major surge in the first few days of the month as spot ETF inflows increased, marking fresh highs of over a billion. Unfortunately, the outflows have soared against the inflows, which is said to be one of the major reasons for the dump, followed by the ongoing consolidation. 

The data from CryptoQuant shows that the Bitcoin spot ETFs are slowing down and hence demand may rise if the BTC price reaches some key levels. As seen previously, the ETF buyers jumped in when the price reached critical support levels. Therefore, the CEO of CryptoQuant believes that the new whales, specifically the ETF buyers, have a $56,000 on-chain cost basis. Hence, if the corrections entail a maximum drawdown of around 30% in bull markets, it could drag the levels close to $50,000. 

This could be when ETF buyers reenter on a large scale, which may mount huge buying pressure on the crypto.

The weekly chart suggests the BTC price has accomplished a parabolic recovery and could begin with fresh bullish action soon. Mainly because the price continues to stick around resistance without experiencing a major drawback. However, the price may still face a steep drop as the technicals do not appear to be favouring the bulls. 

The buying pressure appears to be waning off-let, with the DMI closer to going bearish very soon. The ADX has reached the upper threshold, which suggests a pullback may be in line. Hence, the Bitcoin price may face another bearish action, which may again drag the levels below $60,000. If the bulls hold the rally at $59,449, then a flip may result in the beginning of another consolidation phase. 

However, if the bears successfully drag the levels towards the lower crucial support close to $52,000, here’s when the real party begins. A massive inflow is expected, which may lift the Bitcoin (BTC) price back above $75,000.