Posted by Xoken.org – After successfully recovering from a downward trend in the last month, Bitcoin (BTC) will test the all time high zone this week, with a support point in the range of US$69,000.
Crypto Finance expert Panji Yudha explained that the bullish trend was the result of several positive sentiments towards BTC throughout last week. This tends to be the opposite of previous market expectations, where the majority believed in the slogan ‘Sell in May’.
“The increase in the last few days could be an impetus for Bitcoin to break the Sell in May trend with the potential to close the month of May positively. Since May 1 until now Bitcoin has strengthened, even though in the last three years Bitcoin has always closed down in May,” he explained in official statement, Tuesday (21/5/2024).
Meanwhile, there are mainly two positive sentiments towards BTC, namely signs that inflation in the United States (US) is starting to improve, as well as Bitcoin Spot exchange-traded fund (ETF) trading which is experiencing significant inflows.
First, the official announcement of the US Consumer Price Index (CPI) shows that the increase in inflation in Uncle Sam’s country in April 2024 is lower than March 2024, and better than economists’ projections. To be precise, it rose by 0.3% monthly and 3.4% annually.
Apart from that, the increase in core CPI which does not include volatile food and energy prices, the figure was still in line with market expectations, namely an increase of 0.3% monthly and an increase of 3.6% annually.
“Inflation figures that appear in line with market expectations have triggered a positive response in the crypto market. “Bitcoin, which was previously stressed by the prospect of continued high interest rates, saw its price increase after showing that inflationary pressures were again moderating,” explained Panji.
Furthermore, the positive sentiment of Bitcoin Spot ETF trading also provides an additional boost for BTC. In fact, the new Bitcoin ETF was officially approved by the US Exchange Authority (SEC) on January 12 2024.
“According to Coinglass data, in the trading period May 13-17 2024, the Bitcoin Spot ETF in the US recorded a total net inflow of around US$948.3 million,” he said.
For your information, the Spot Bitcoin ETF is an investment product that allows investors to gain exposure to Bitcoin conditions without having to own BTC directly, but through ETF issuers, or in concept like buying mutual funds.
A report from Bitcoin.com proves that in just under 3 months, a total of 11 Bitcoin Spot ETF issuers in the US have controlled ownership of 837,511.01 BTC or the equivalent of US$56 billion, meaning they have reached a portion of 4.25% of the total Bitcoin circulation in the world. as much as 19.7 billion BTC.
Examples of popular Bitcoin Spot ETF issuers include BlackRock iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Trust (GBTC), Fidelity Wise Bitcoin Fund (FBTC), ARK Invest The ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB).
Looking ahead, Panji sees that the rise of BTC from previously dropping to the level of US$56,500 on May 1 2024 to re-entering the all time high zone, will actually be a new test for making BTC. The potential for BTC to set a new price record in the future will be determined by its staying power in the range of US$69,000 this week.
“If BTC can stay above the support of US$69,000, then the next potential is to rise to test the all time high area at US$73,768. However, if there is a decline below the support of US$69,000, the potential will bring BTC to weaken to US$65,500,” he concluded.