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Since reaching its all-time high back in March, Bitcoin has struggled to stay above the $70K mark. Spending more time in the $60K zone and frustratingly, in the $50K territory, Bitcoin's return to $70K has been highly anticipated.
Yesterday, the world's leading cryptocurrency finally topped $70K, reaching as high as $71,260. But what caused the final push and has Bitcoin found a new resistance?
Institutional Support
According to BRN, Bitcoin's increasing popularity among TradFi institutions is proving to fuel its price growth. Yesterday, Bitcoin witnessed a substantial $500 million inflow into ETFs, demonstrating strong institutional commitment.
This surge in institutional demand, coupled with the recent price breakout, underscores a growing confidence in Bitcoin's medium-term outlook, even as it approaches its previous all-time high.
Last week, the US Securities and Exchange Commission (SEC) has approved changes to stock exchange rules that allow for the listing of options linked to Bitcoin ETFs.
Breaking Resistance
BRN believes that by breaking the $70K, Bitcoin has breached its resistance level at that price, which signals continued strength in price momentum.
The MACD shows an increasing momentum and stoch RSI shows a demand rebound. Moreover, the recent liquidation of over $80 million in Bitcoin suggests heightened market activity and a potential for further price increases.
The imminent release of key economic indicators, including Q3 GDP, core PCE, and employment data could validate a strong economic outlook, adding further fuel to Bitcoin’s potential for an upward breakout.
Elections Ahead
The upcoming U.S. presidential election, where Donald Trump appears to be gaining traction, is a key driver for Bitcoin's price. Trump, who declared himself as the "Crypto President" is currently leading the polls on PolyMarket, with 66.3% odds compared to Kamala Harris's 33.73%.
Harris, who recently broke her silence on crypto, has also pledged to "support a regulatory framework for cryptocurrency and other digital assets so Black men who invest in and own these assets are protected."
Ripple CEO Brad Garlinghouse has spoken supportively of Harris and the Democrats' approach to crypto. “Obviously, Trump came out early and very aggressively… and said he’s the crypto president,” Garlinghouse said. “Kamala and Team Harris have been more nuanced.”
Stay Invested
Bitcoin's latest achievement of breaking through the $70,000 mark has inspired more confidence in the market. BRN advises to "stay heavily invested in crypto-currencies and favoring Bitcoin over Ethereum."
Bitcoin's institutional support continues to strengthen, with yesterday's #ETF inflow of nearly $500 million further solidifying its position as a preferred investment.