Bitcoin Could Surpass US$75,000 Due to Short Squeeze
6/6/20242 min read
Bitcoin Passes Psychological Level of US$70,000
The price of Bitcoin (BTC) has surged around 2 percent in the last 24 hours, breaking through the psychologically significant barrier of US$70,000. This price spike not only attracted the attention of investors, but also analysts who were optimistic about the future direction of the market. This increase reflects the strong positive sentiment within the cryptocurrency community.
Optimism Among Investors
This upward trend in Bitcoin prices has sparked optimism among investors. Many see this rise as a positive signal for further growth. Institutional and retail investors alike are showing great interest, with many hoping that the momentum will continue. Significant Bitcoin price movements are often a leading indicator for the cryptocurrency market as a whole.
Analyst Analysis and Predictions
Analysts also provide an optimistic view of this surge in Bitcoin prices. According to some experts, factors such as institutional adoption, apparent increase in regulations, and growing demand could be the main drivers behind this price increase. The analyst also noted that although volatility remains a key characteristic of Bitcoin, the long-term trend still looks positive.
Overall, crossing the US$70,000 level is an important milestone for Bitcoin. This not only strengthens its position as a premier digital asset but also provides additional confidence to investors regarding further growth potential. Thus, both investors and analysts will continue to monitor market developments closely, anticipating further movements that may occur.
Will Bitcoin Hit US$75,000 Due to Short Squeeze?
NewsBTC reports that the latest spike on May 20, which saw Bitcoin rise above US$66,000 after several days of declines, marked a significant turning point.
Even so, this main cryptocurrency fell to US$56,500, but bullish sentiment remained. Currently, BTC is trading in a wider range, with support at US$72,000 and an all-time high at US$73,800.
The significance of the US$72,000 resistance level cannot be underestimated. This level has been tested several times in recent weeks but has not been definitively broken.
If this resistance level is successfully broken, especially if accompanied by increased trading volume, it could signal the beginning of a substantial price rally.
Willy Woo predicts that a close above US$72,000 could trigger rapid price expansion, potentially pushing Bitcoin beyond US$75,000 due to a short squeeze. In this scenario, many short positions would be forced to close, resulting in a wave of liquidations and further pushing the price up.
Woo's analysis shows that around US$1.5 billion of short positions could be liquidated if Bitcoin surpasses US$72,000. This could push Bitcoin to a new all-time high, perhaps within seven weeks of its latest halving.
Institutional Fund Flow Increases Market Confidence
This bullish sentiment was further strengthened by a significant increase in institutional fund flows into Bitcoin spot exchange-traded funds (ETFs). On June 4, the issuer of a spot Bitcoin ETF bought US$886.6 million worth of BTC, according to sosovalue data.
Among the major players, Fidelity acquired US$378.7 million in Bitcoin, while BlackRock, which manages the largest spot BTC ETF, added US$274.4 million in crypto. Bitwise also made a large investment, purchasing US$61 million worth of BTC.
Additionally, Grayscale also saw significant inflows, adding US$28.2 million in Bitcoin on behalf of its clients. This inflow is the second highest daily inflow volume since the launch of the spot Bitcoin ETF in January 2024. With Bitcoin continuing to fluctuate around the US$70,000 level, the market remains alert for signs of further bullish momentum.
A potential breakout above US$72,000, coupled with strong institutional demand, could pave the way for Bitcoin to reach and surpass the US$75,000 level.
support@coreasia.io
© 2024. CORE (Community Representative)