Analyst Identifies Level Set To Determine Next Move
Bitcoin has been on an upward trajectory for a while now, witnessing a significant rally within the broader crypto market and reaching the $64,000 threshold on Sunday, as analysts have identified trends that could decide the asset’s next direction.
Bitcoin Poised To Witneesed A Rally Or Dip In Short Term
Cryptocurrency analyst and trader Ali Martinez has taken to the social media platform X (formerly Twitter) to share his insights on Bitcoin’s price action in the short term with the crypto community.
Martinez has spotted an area that could either lead to an uptick or a correction. Ali Martinez highlighted that more than half a million Bitcoins have been transacted within the range of $61,100 and $61,800, and as a result, the crypto asset has formed a “substantial support area.”
According to the analyst, BTC is expected to rise towards $65,900, if it manages to hold above this level. However, the experts expect this to happen considering the lack of obstacles that lie ahead.
Furthermore, Martinez has also pointed out the potential for Bitcoin to undergo a correction if it falls below the support level. The crypto analyst stated that if this happens, BTC could decline to “$56,970 or even deeper to $51,500.”
The Post read:
Over 500,000 BTC have been transacted in the range of $61,100 to $61,800, which has created a substantial support area. If Bitcoin remains above this threshold, it could climb towards $65,900, given the minimal resistance ahead. Conversely, should BTC dip below support, a correction could lead it down to $56,970 or even $51,500.
Ali Martinez’s predictions came in light of the broader crypto market experiencing a significant rally. Presently, the entire crypto market is seeing a substantial capital inflow not recorded in over 2 years.
Martinez noted in another X post that approximately $48.54 billion is entering the crypto market, indicating a rise in investors’ interest in crypto. He further underscored that the development marks the “largest inflow of capital since October 2021.”
So far, experts forecast that in the upcoming months, there will be bigger financial inflows due to more lucid cryptocurrency regulatory frameworks.
BTC ETFs To Control 10% Of The Crypto Asset’s Supply
Bitcoin Spot Exchange-Traded Funds (ETFs) continue to gain traction as BTC maintains its upward momentum. Due to this, SkyBridge founder Anthony Scaramucci has predicted that the products could “take control of 10% of BTC’s supply.”
Scaramucci noted that a lot of BTCs have been “lost since the ETFs were introduced.” Consequently, ETFs now boast about 776,000 BTC since the products began trading.
However, he expects the products to take control of the aforementioned percent “when it hits 1.7 million BTC.” Anthony Scaramucci is confident that when this happens, there will be a swift rise in Bitcoin’s price.
Currently, the price of Bitcoin is trading at $65,184, demonstrating an increase of over 5% in the last 24 hours. Meanwhile, its market cap and trading volume are both up by 5% and 79% respectively in the past day.
Featured image from iStock, chart from Tradingview.com
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