Will bitcoin dump below $70,000 after the latest rejection?
The primary cryptocurrency registered a renewed uptick over the past hours, with its price soaring past $74,000 before it faced an immediate rejection.
The broader outlook remains bearish, with BTC still trading far below its all-time high of over $126,000 reached last October. Analysts have highlighted several key resistance levels that must be reclaimed before bulls can regain full control.
More Gains Ahead?
The impressive revival comes on the back of Donald Trump’s recent remarks that Iran is “about to surrender” as well as the reports that the newly elected leader of the Asian country, Mojtaba Khamenei (who is the son of the late Ali Khamenei), is “likely disfigured.”
BTC’s pump has caught the attention of multiple market observers, and some expect the rally to go on in the short term. X user Ted noted that Coinbase Premium is rising, indicating solid spot demand. He believes that holding above the $70,000 zone could lead to further gains of around $76,000.
The analyst who goes by the moniker Ardi on X claimed that the leading digital asset needs to flip the $74,000 resistance into support to actually “start looking macro bullish again.” If it could achieve that, the valuation might surge to $85,000, he added. At the same time, he warned that anything below that mark is “just price setting a macro lower high in a downtrend.”
Certain indicators suggest the asset could continue marching north. Data from SoSoValue show that over the past few days, inflows into spot BTC ETFs have outpaced outflows. This is a clear bullish factor that displays that institutional investors, such as pension funds, hedge funds, and asset managers, have been increasing their exposure to cryptocurrency. As inflows rise, ETF issuers are required to purchase additional BTC to back the new shares, creating buying pressure that can further support the price.
Next on the list is the gradually declining amount of coins sitting on crypto exchanges. According to CryptoQuant, the figure slipped to roughly 2.74 million today, the lowest level since the end of 2020. This development signals that investors have been moving their holdings toward self-custody methods and are in no rush to cash out.
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Short-Term Pullback on the Horizon?
Other metrics, such as the Relative Strength Index (RSI), suggest that BTC’s substantial resurgence could soon be replaced by a correction. The technical analysis tool measures the speed and magnitude of recent price changes to give traders an idea about possible reversal points. It ranges from 0 to 100, and readings above 70 signal that the asset is overbought and gearing up for a decline. As of press time, the RSI stands at 81.
BTC’s Market Value to Realized Value (MVRV) is also worth analyzing. It compares the current value of all coins to the price at which people originally paid to acquire their holdings. Over the past months, the ratio has been decreasing, reaching around 1.3 today. According to CryptoQuant, readings below 1 typically signal a bottom, implying that the bear market may not have fully unfolded yet.
Earlier this week, numerous analysts warned that BTC’s price could drop to $50,000, and possibly lower, later this year.
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