Bull Run Continues Unabated. Bitcoin surpasses $73,000, supported by ETF inflows, halving event anticipation, and a dovish Fed outlook. Bullish view
Bearish view
The BTC/USD pair rally gained momentum as investors continued buying the dip ahead of the upcoming halving event and as institutional demand continued. Bitcoin crossed the psychological point at $73,000, a strong rally considering that it was trading at $38,500 last month. Bitcoin momentum continuesBitcoin has been in a strong bull run, helped by numerous tailwinds in the industry. The first, and most important tailwind was the spot Bitcoin approvals in January as it gave big institutional investors access to the asset.Bitcoin ETFs have continued seeing strong inflows as many investors boost their investments in the coin. Data shows that the iShares Bitcoin ETF had over $1 billion in inflows on Tuesday, breaking a record. It now has over $14.5 billion in assets. Other funds are also seeing strong inflows.The other important tailwind is the upcoming halving event. Halving is an important part of Bitcoin’s ecosystem in that it helps to moderate its supply. It does that by reducing the amount of coins that can be mined in a day and increasing the mining difficulty.Like with other assets, Bitcoin has done well because of the rising anticipation that the Federal Reserve will start cutting interest rates later this year. In most cases, Bitcoin and other risky assets like stocks tend to do well when the Fed is moderately dovish.Bitcoin’s supply is also falling. Data shows that the amount of coins in centralized exchanges has dropped sharply in the past few weeks. As such, institutional investors are having to compete for the limited supply.Analysts are also highly confident that Bitcoin has more room to run. Those at Standard Chartered believe that the coin will jump to over $100,000 this year. BTC/USD technical analysisBitcoin has continued its strong bull run since January last year. In this period, the BTC/USD pair has continued making higher highs and higher lows. It has constantly remained above the supertrend indicator.The BTC/USD pair has also risen above all moving averages. At the same time, the Money Flow Index (MFI) and the relative Strength Index (RSI) have remained above the overbought level. This is a sign that the pair has bullish momentum.The Average Directional Index (ADX) has risen to almost 60, signalling that the trend is strong. Therefore, the pair will likely continue rising as buyers target the key psychological level at 75,000.More By This Author:AUD/USD Forex Signal: Inverse Head And Shoulders Pattern Forms BTC/USD Forex Signal: Bitcoin Price Could Hit $75k This WeekEUR/USD Forex Signal: More Upside Ahead Of ECB Decision, NFP Data
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