Will Bitcoin Hit $70,000 again? Here’s What You Need to Know

Bitcoin has recently exhibited considerable volatility, testing support levels at $56,500, sparking discussions about its potential to attain the $70,000 price target. This scrutiny of support coincides with the significant event of the recent bitcoin halving on May 20th, marking the third halving cycle for Bitcoin. The halving resulted in a reduction of miner rewards from 6.25 BTC to 3.125 BTC, instantly impacting the supply and demand dynamics within the Bitcoin market. This adjustment directly influences the rate at which new Bitcoins enter circulation.

Market Sentiment and Potential Catalysts

Despite prevailing bearish sentiment, Bitcoin bulls are actively working to regain momentum by pushing the price above the psychologically significant level of $60,000. Notably, veteran trader Peter Brandt has highlighted the possibility of a typical bull market continuation pattern if Bitcoin maintains recent lows and continues its upward trajectory. In tandem with these we can see the Open Interest of Bitcoin Surge over 6.45% with a valuation of $16.5 Billion. The RSI which signals a bear projection is at 67.12 thereby correlating with recent Bitcoin Price increase of 6.29%, trading at $63,289.

Additionally, market participants are closely monitoring spot Bitcoin exchange-traded funds (ETFs), which recently witnessed significant outflows amounting to $563 million on May 1. However, sentiment may shift if Bitcoin ETFs begin to experience consecutive days of net inflows. Former BitMEX CEO Arthur Hayes has expressed optimism, suggesting that the recent sell-off may have concluded, potentially signaling a resumption of upward movement in the cryptocurrency markets.

Also Read: Crypto Prices Today May 4: Bitcoin Rallies Past $63K As ETF Inflows Regain Momentum

Bitcoin Price Forecast and Key Considerations

In analyzing potential price movements, attention is drawn to liquidation charts, which indicate the possibility of significant liquidations exceeding $1.19 billion if the BTC price surpasses certain critical levels.

However, a closer examination of historical accumulation trends, as highlighted by IntoTheBlock’s in/out of the money chart, provides further insights. This chart identifies a historical accumulation zone between $61,770 and $63,583, indicating a notable number of addresses acquiring BTC within this price range.

This accumulation suggests underlying support for Bitcoin’s price at these levels. Nevertheless, failure to overcome resistance could lead to price declines toward $55,500. The current BTC price forecast suggests a potential recovery toward $70,000, with further upward movement supported by the Relative Strength Index (RSI) showing renewed bullish momentum. However, caution is advised, as profit-taking may occur at key levels such as $66,000 and $68,000, potentially dampening the upward momentum toward the ultimate target of $70,000.

Also Read: Grayscale Bitcoin ETF Ends 77-Days of Outflows, GBTC Inflows Begin

The post Will Bitcoin Hit $70,000 again? Here’s What You Need to Know appeared first on CoinGape.