Bitcoin’s price surged above $71,000 following the excitement surrounding spot Ethereum ETFs. However, aggressive buyers find themselves trapped at critical resistance levels. Market sentiment has declined in the past 24 hours as BTC consolidates within a range-bound zone, losing its buying demand. Analysts believe this consolidation is temporary, but the price should remain above a key area of interest, indicating the potential for a rebound or new all-time high in the near future.
The consolidation of Bitcoin’s price continues as it briefly surpassed $72,000 on hopes of a spot Ethereum ETF approval. However, selling pressure caused a drop back below $70,000. Rekt Capital, an on-chain data provider, suggests that a weekly candle close above approximately $71,500 could trigger a breakout from the Re-Accumulation Range. However, historical patterns indicate that Bitcoin may consolidate within this range for several more weeks.
Rekt Capital also notes that extended consolidation could align Bitcoin with historical halving cycles. The current cycle acceleration is around 190 days, an improvement from the 260-day acceleration observed in mid-March. A breakout could lead to an accelerated cycle and an earlier peak in Bitcoin’s bull market, while extended consolidation would support synchronization with past halving cycles, potentially prolonging the bull run.
According to analyst Jelle, Bitcoin is holding above a critical support zone of $68K-$69K, indicating strength in the market. It is expected to consolidate within this range before reaching new all-time highs. This week is significant as it builds momentum for the upcoming Ethereum ETF news, which could further impact market trends.
Traders are convinced that Bitcoin’s 14% surge over the past week is a legitimate market pump, and they do not expect another correction until it reaches $90,000. Analysts believe this surge is supported by both fundamentals and technicals, with the previous price drop seen as a necessary correction for higher prices in the future.
The TD Sequential indicator on the one-hour chart is currently presenting a buy signal, suggesting that Bitcoin is poised for a rebound.
Bitcoin has been trading in a bullish range around $70,000 for the past 24 hours. Such ranges often break to the upside near overhead resistance levels. However, bearish traders are defending against a surge above Fibonacci channels, causing the price to consolidate below $70,000 after being rejected above $71,000. Currently, Bitcoin is priced at $70,079, reflecting a 1.2% decrease in the last 24 hours.
The rising 20-day exponential moving average (EMA) and the RSI below the overbought territory indicate an upward trend. If Bitcoin surpasses $74,000, it could target $80,000, but significant selling pressure may occur at that level.
On the downside, the moving averages serve as critical support levels. A break and close below these averages would indicate weakened bullish momentum, potentially causing the pair to drop to $65,198 and then to $63,000.
Bitcoin ETF inflows remain strong, with a total net inflow of $306 million for Bitcoin spot ETFs on May 21. This marks seven consecutive days of positive inflows. Grayscale’s ETF GBTC experienced no net outflow, while BlackRock’s ETF IBIT saw a single-day inflow of $290 million. The total net asset value of Bitcoin spot ETFs is currently $58.91 billion.
