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4 Reasons to Buy Bitcoin Under $70K

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4 Reasons to Buy Bitcoin Under $70K

Bitcoin has climbed above the $70,000 threshold for the first time in six weeks, hitting a new six-week high. This milestone indicates the wisdom of buying Bitcoin during its dip below $70,000. The digital currency reached $71,401 on May 20, marking a price level not seen since April 9. As Bitcoin regained its psychological resistance of $70,000, its funding rate showed a significant increase.

The funding rate for Bitcoin rose to 0.0187%, the highest it has been since April 9. This data suggests that traders are largely optimistic, favoring long positions in Bitcoin. A positive funding rate typically means that traders are willing to pay a premium to maintain their long positions, highlighting a bullish sentiment. Prior to this rally, the funding rate had remained below 0.01% for the past month, indicating a growing confidence among Bitcoin buyers.

On a technical level, Bitcoin’s price charts are showing signs of further upward movement. A four-hour Bitcoin chart has recently revealed an inverse head and shoulders pattern. Traders often use this pattern to spot potential reversals from a bearish stance to a bullish one. Popular cryptocurrency analyst Moustache pointed out this pattern and implied that it foretells more upward momentum. According to his analysis, other cryptocurrencies, or altcoins, will follow Bitcoin’s lead.

In addition to pattern analysis, fractal analysis sheds more light on Bitcoin’s prospects. Fractals are recurring technical chart patterns that repeat across various timeframes. Bitcoin’s current rally on the weekly chart bears a striking resemblance to its performance in November 2021. Back then, after a low of $31,000 in July, Bitcoin soared to $69,000 by November. If Bitcoin follows this historical pattern, we may witness significant further gains in the coming weeks.

Further reinforcing this bullish outlook, Bitcoin’s price movement also mirrors its bull run in 2017, according to another seasoned analyst, Jelle. He remarked that Bitcoin seems to be following the same trajectory as it did during the 2017 bull market. Although turbulent around previous cycle highs, once Bitcoin clears these hurdles, smoother advancements could follow.

Institutional investment into Bitcoin is also contributing to its recent climb. For two consecutive weeks, U.S. Bitcoin exchange-traded funds (ETFs) have recorded positive inflows, reversing three prior weeks of net outflows. These ETFs cumulatively gathered over $200 million worth of Bitcoin in the previous week and amassed a larger total of over $413 million on the week of May 6. On May 20 alone, Bitcoin ETFs saw positive inflows of over $235 million, exceeding the inflows of the previous week.

The surge in institutional investment via Bitcoin ETFs is a major factor in Bitcoin’s current rally to new highs. By mid-February, Bitcoin ETFs accounted for roughly 75% of all new investment in the world’s most prominent cryptocurrency as it surpassed the $50,000 mark. This influx of institutional funds underscores the growing confidence in Bitcoin’s potential for further growth.

All these factors collectively build a compelling case for Bitcoin’s continuing rise. Leveraged long positions, positive fractal patterns, historical similarities, and strong institutional investment are all aligning to create a favorable market environment for Bitcoin. This combination of technical and fundamental factors makes a strong argument for keeping an eye on Bitcoin’s ongoing performance and potential growth.

19 thoughts on “4 Reasons to Buy Bitcoin Under $70K

  1. No matter how high Bitcoin climbs, it always plummets later. I’ll stick to more stable investments, thanks. 📉😔

  2. Six-week highs and positive funding? Bitcoin is in a prime spot for gains!

  3. Analysts pointing out bullish patterns reassure me Bitcoin’s on a solid path.

  4. This rally might just be another hype fueled by institutional investors. Regular folks will probably end up suffering.

  5. Every time Bitcoin climbs, people lose money after the inevitable fall. This market isn’t for everyone.

  6. Just when you think Bitcoin is stable, it climbs again. This constant fluctuation is nerve-wracking.

  7. Too many people are blindly optimistic. Lets not forget the countless times Bitcoin has crashed after hitting new highs.

  8. This feels like the calm before the storm. I dont trust Bitcoins price surges at all.

  9. Bitcoin hitting $71,401 and positive ETF flows? We’re in for some exciting times!

  10. Watching those historical patterns unfold again gives me chills. Bitcoin for the win!

  11. Wow, Bitcoin’s above $70K! This is showing the power of buying during those dips.

  12. Historical similarities suggest we’re in for a thrilling ride. Exciting days for Bitcoin! 📆

  13. It feels like a trap. Every time Bitcoin goes up, it ends up crashing again later. No thanks!

  14. Leveraged positions and positive fractals? Bitcoin’s climb seems inevitable! 🌄

  15. The same predictions about Bitcoin’s future have been made every time it goes up. I’ll pass on this rollercoaster. 🎢⬇️

  16. Institutional confidence in Bitcoin is a major uplift. Proud to be a holder!

  17. With Bitcoin mirroring past bullish trends, the optimism is contagious. Sky’s the limit! 🚀

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