Both the S&P 500 Index and Nasdaq Composite saw record highs after a US Consumer inflation report showed lower than expected numbers. This led to a surge in Bitcoin prices, crossing $66,000. As Bitcoin surpasses $60,000, the likelihood of a significant drop diminishes, but a definite upward trend is not guaranteed.
Potential Bitcoin Consolidation
Galaxy Digital CEO, Mike Novogratz, predicted that Bitcoin could consolidate within the $55,000 to $75,000 range before the end of the quarter. The inability of bears to push Bitcoin under $60,000 has caught the attention of buyers. CoinShares reported a $130 million inflow into crypto investment products, signaling a positive shift after weeks of outflows.
Rise in Institutional Investments
The Wisconsin State Investment Board disclosed investments of $164 million into spot Bitcoin exchange-traded funds. Analysts suggest that more institutional investments may be on the way, as these entities tend to make collective moves.
Key Points for Investors
- Bitcoin's price surpassing $66,000 decreases the chance of a breakdown.
- Galaxy Digital anticipates Bitcoin will consolidate within the $55,000 to $75,000 range.
- Institutional investments in Bitcoin ETFs are rising, impacting market trends.
- Ethereum's strong defense at $2,850 indicates robust bullish support.
Bitcoin has exceeded the 20-day exponential moving average, showing that buyers are absorbing supply. If the momentum continues and the price surpasses the 50-day simple moving average, it could lead to a climb towards the resistance level at $73,777, which bears are likely to defend strongly.
Conclusion
The recent performance of Bitcoin, coupled with increased institutional investments, paints a positive picture. However, investors should remain cautious as resistance levels are still relevant. Ethereum's resilient support at $2,850 reflects a constant battle between bulls and bears, indicating potential significant price movements based on market conditions.
This article was originally posted on BH NEWS: US Inflation Data Boosts Bitcoin