Bitcoin
Why BTC Might Drop to $60,000 Before Reaching $80,000
The crypto market is back to its choppy trend as the industry waits for the Securities and Exchange Commission (SEC) to decide on the proposed Ethereum spot ETFs. Prices soared splendidly on Monday after analysts revised their forecast for approval from 25% to 75%. Bitcoin Price rose to $72,000, continuing last week’s uptrend above $67,000.
Ethereum charged impressively from $3,000 support to above $3,700. Major altcoins also took advantage of the new bullish sentiment and recovered some of the losses suffered in April and early May.
If the ETF is approved, Ethereum is predicted to reach a new all-time high, possibly triggering an altcoin season. Bitcoin price reached a new all-time high after the SEC nodded to the ETF in January.
What’s next for Bitcoin as Bitcoin price retreats
Bitcoin gradually retreated from its weekly peak of $72,000 to trade at $67,908 during US business hours on Thursday. This sent mixed signals in the market, with some wondering if the correction will continue towards $60,000 or if the uptrend will resume towards a new record high at $80,000.
On the positive side, the likely approval of the spot Ethereum ETF could encourage investors to seek more exposure to Bitcoin and major altcoins. Such an occurrence would translate into an increase in momentum, supporting a larger breakout in the coming days.
After weeks of persistent departures, Bitcoin ETFs are back in the green, suggesting that market sentiment is changing positively. Data from SoSoValor shows total daily net inflow on May 22 of $153 million.
Bitcoin ETF Statistics | SoSoValor
BlackRock and Fidelity were the best performing ETFs, with $92 million and $75 million in net inflows, respectively. Ark Invest received $3 million in net inflow volume, while the rest of the ETFs except Grayscale had zero volume. Grayscale is still dealing with exits, considering the $16 million recorded on Wednesday. However, the magnitude of outflows has decreased significantly.
Bitcoin Price Analysis: Assessing the Technical Structure as the Price Falls
The ongoing correction in Bitcoin price is putting pressure on support areas. As it stands, a correction below $67,000 is likely during the US session. A subsequent pullback of the Relative Strength Index (RSI) reinforces the bearish outlook in the near term.
The indicator now remains at 54, from a weekly high of 66, while sliding into the neutral zone. This outlook could be interpreted as a reason to sell BTC or liquidate open options, in turn increasing selling pressure.
Bitcoin Price Chart | Trading view
Support areas below $67,000 range between the 20-day exponential moving average (EMA), the descending trendline, and the 50-day EMA. If sellers do not relent, a collapse to $60,000 cannot be ruled out yet.
Resumption of the uptrend would depend on the approval of spot Ethereum ETFs, support at $67,000, and the ability to regain ground above $72,000. Above this level, bulls could quickly rise to $80,000, setting a new precedent for the bull run targeting $100,000 in 2024.
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