Bitcoin Drops Below $70K But Still Holds Above Key Area Of Interest! What’s Next For BTC Price?

Bitcoin’s price climbed above $71,000 amid the excitement over spot Ethereum ETFs. However, bearish forces have surfaced, trapping aggressive buyers at critical resistance levels. Over the past 24 hours, market sentiment has declined as BTC failed to maintain its buying demand, now consolidating within a range-bound zone. Analysts believe this consolidation is temporary, with the price remaining above a key area of interest, suggesting a potential rebound or new all-time high in the coming hours.

Consolidation Of Bitcoin Price Continues  

Bitcoin (BTC) surged past $72,000 on increased hope for the approval of a spot Ethereum ETF. However, the bulls couldn’t maintain these levels, and Bitcoin’s price slipped back under $70,000 due to selling pressure. According to on-chain data provider Rekt Capital, a weekly candle close above approximately $71,500 could trigger a breakout from its Re-Accumulation Range. However, historical patterns suggest that Bitcoin may consolidate within this range for several more weeks.

Rekt Capital notes that extended consolidation could help Bitcoin realign with historical halving cycles. The current cycle acceleration is around 190 days, an improvement from the 260-day acceleration observed in mid-March when Bitcoin reached new all-time highs. While investors may be eager for a breakout, such a move would likely lead to an accelerated cycle and an earlier peak in Bitcoin’s bull market. Conversely, extended consolidation would support synchronization with past halving cycles, potentially stretching the duration of the bull run. 

#Bitcoin is holding above the key area of interest!

As said: range here for a while, and I'm expecting new all-time highs$ETH ETF news soon.

Big week! https://t.co/L8QGkLMSmJ pic.twitter.com/x15vggxj3Y

— Jelle (@CryptoJelleNL) May 22, 2024

According to a prominent analyst Jelle, Bitcoin is maintaining its position above a critical support zone of $68K-$69K, signaling potential strength in the market. As predicted, it may consolidate within this range for a while, setting the stage for new all-time highs. Additionally, this week is big as it is building momentum for the upcoming $ETH ETF news, which could further influence market trends.

Bitcoin’s 14% surge over the past week has convinced traders that it could be the “real deal market pump,” with another correction not expected until it reaches $90,000.

Analysts believe this surge is the “real deal” as both fundamentals and technicals align. They noted that Bitcoin’s price drop from its all-time high of around $73,738 to a 21% decline to $58,000 on May 2 was a “much-needed correction for higher prices in the future.”

The TD Sequential indicator, used for forecasting Bitcoin price movements on the one-hour chart, is currently presenting a buy signal. This suggests that Bitcoin ($BTC) is poised for a rebound.

What’s Next For BTC Price?

Bitcoin has been trading in a bullish range around $70,000 for the past 24 hours. Such ranges near overhead resistance levels often break to the upside. However, bearish traders continue to defend against a surge above Fibonacci channels. As a result, the price is aiming for a consolidation below $70K after getting rejected above $71,000. Currently, Bitcoin is priced at $70,079, reflecting a 1.2% decrease in the last 24 hours.

The rising 20-day EMA ($68,714) and the RSI below the overbought territory suggest an upward trend. If Bitcoin surpasses $74,000, the BTC/USDT pair could target $80,000, where significant selling pressure from bearish traders may occur.

On the downside, the moving averages are critical support levels to watch. A break and close below these averages would indicate that bullish momentum has weakened, potentially causing the pair to drop to $65,198 and then to $63,000.

The positive thing is that Bitcoin ETF inflows continue to be strong. On May 21, the total net inflow for Bitcoin spot ETFs reached $306 million, marking seven consecutive days of positive inflows. Grayscale’s ETF GBTC experienced no net outflow for the day, while BlackRock’s ETF IBIT saw a single-day inflow of $290 million. The total net asset value of Bitcoin spot ETFs stood at $58.91 billion.