Bitcoin Price Hits $70,000; Will It Break $75,000 Soon?

Bitcoin price added another 3% today to last week’s 10% upside move as it jumped from $65,860 to 71,979, but consolidating in the $68.5K-$70K range since hitting the local high. The crypto market, especially altcoins, witnessed massive volatility as investors awaited the U.S. SEC’s decision on spot Ethereum ETF.

The week ended strongly for Bitcoin and altcoins as the SEC approved spot Ether ETF, but will it trigger a BTC price rally to a new all-time high?

BTC Price Action Sparks New ATH Speculations

Major Week for Crypto

Bitcoin price performance this week has sparked new all-time high speculations among investors. This week has been marked by several critical moments — the House passed the FIT21 for crypto regulation and the anti-CBDC bill banning the Federal Reserve from issuing CBDC, spot Ether ETFs approval, and spot Bitcoin ETF buying after outflows in earlier weeks.

Headwinds to Bitcoin New All-Time High

The crypto market sentiment has increased to 76 (extreme greed) from 70 (greed). However, headwinds still persist for Bitcoin price to hit a new all-time high. For short-term, macroeconomic events such as US PCE inflation data and crypto market expiry on May 31 are primary obstacles to the ongoing Bitcoin price rally.

Bitcoin holds firm above key support level at $66K after the cooling US CPI inflation triggered a breakout in BTC price in mid-May. BTC also saw a 2-month trendline breakout this week, sparking trades for long positions.

Meanwhile, over 65,687 BTC options of a notional value of $4.54 billion are set to expire, with a put-call ratio of 0.57. The max pain point is $65,000, indicating high odds of Bitcoin selloff after days of low trading volumes. Implied volatility (IV) witnessing significant declines across all major terms, which means volatile price movements can likely cause a pullback in BTC price.

BTC Predictions by Analysts

Crypto analysts are bullish on BTC price to hit at least $100K this year, with rate cuts by the US Fed and other central banks to be the major reasons behind it. Fed Chair Jerome Powell reaffirmed confidence about three rate cuts and denied stagflation concerns in recent speeches.

Analyst Caleb Franzen said, “Bitcoin has unquestionably formed a new base.” After making lower lows for weeks, it made higher lows for 3 weeks. He also added that this bullish structure coincides with the 30-day Williams%R signal as overbought signals are bullish.

Popular crypto analyst Michael van de Poppe predicts a consolidation for a longer period and the possibility of even seeing $61-63K levels again. “Rotation from Bitcoin to Ethereum causing a longer sideways period,” he added. Moreover, a strong weekly bullish divergence implies that a rotation is taking place to altcoins in the coming period.

Whales are buying the dip as a new buying trend for BTC price appears. On-chain data from IntoTheBlock indicates whale addresses have been the main accumulators, leading to $1.4 billion worth of BTC in their balances. As prices dropped below $67,000, whales accumulated more BTC.

Will BTC Price Hit $75,000 Soon?

BTC price jumped 3% in the past 24 hours, with the price currently trading near $70,000. The 24-hour low and high are $68,343 and $70,479, respectively. Furthermore, the trading volume has decreased by 50% in the last 24 hours, indicating a decline in interest among traders. Thus, the buying pressure is low amid a long holiday weekend as the US market is closed on Monday for Memorial Day.

Bitcoin options and futures data indicate that buying and selling are almost balanced in the last 24 hours as total BTC futures open interest and options open interests dropped in the last few hours. Traders expect low trading volumes in the coming days due to holidays and other factors.

The US dollar index (DXY) dropped to a low of 104.64 from a high dollar index of above 105. The US 10-year Treasury yield also fell to 4.467%. As Bitcoin moves opposite to DXY and Treasury yields, the pressure has eased and CME FedFatch Tool indicates a 45% odds of 25 bps rate cuts in September.

These factors are catalysts for continuous upside in BTC price as traders and investors remain bullish on Bitcoin. While predicting the actual price and timing of a new all-time high is difficult, the current scenario suggests the odds of hitting a new high are high.

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