May 20, 2024 at 04:40Bitcoin is potentially on the cusp of reaching new record highs if it can successfully breach the critical resistance level of $67,500, according to market analyst Markus Thielen.
Currently, the $67,500 mark represents a significant barrier for Bitcoin, which if surpassed, could set the stage for unprecedented price levels, notes Markus Thielen, head of research at 10x Research, in a May 20 report.
Thielen stated:
“A move above $67,500 could set off a surge to new all-time highs, a development anticipated by our Bitcoin ETF model.”
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This comes as Bitcoin recently surpassed the $66,000 level, reflecting a 7.3% increase over the past week, as per TradingView data.
Thielen highlighted last week’s recovery as a strong indicator of positive price momentum:
“A break above $67,500 could open the way to new all-time highs, as forecasted by our Bitcoin ETF model.”
Additionally, U.S. spot Bitcoin ETFs have seen continued positive inflows for two consecutive weeks, with over $200 million in net inflows, although this is a decrease from the previous week’s $413 million, according to Dune Analytics.
Before the week starting May 6, there had been three weeks of net outflows from Bitcoin ETFs.
Institutional investment through ETFs has played a crucial role in the recent rally, with Bitcoin ETFs making up approximately 75% of new investments in the cryptocurrency as it previously breached the $50,000 threshold.
However, overcoming the $67,500 resistance remains crucial. A breakout above this level could trigger the liquidation of nearly $300 million in leveraged short positions across various crypto exchanges, as reported by CoinGlass.
Tether’s Impact on Bitcoin’s Price Movement
On a monthly chart, Bitcoin has turned a significant resistance into support, signaling potential for further upward movement, according to a May 16 X post by well-known crypto analyst Rekt Capital.
This bullish trend coincides with Tether issuing $1 billion of its USDT stablecoin on May 17, bringing its annual issuance to $31 billion. The issuance of new USDT has been linked to previous rises in Bitcoin’s price from $27,000 to $73,000, as noted by Lookonchain on May 17.
Moreover, Tether has disclosed plans to allocate 15% of its net profits to Bitcoin purchases to diversify the stablecoin’s reserve assets. On March 31, Tether purchased 8,888 BTC valued at $618 million, making it the seventh-largest Bitcoin holder globally, according to BitInfoCharts.
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