Institutional demand for Bitcoin has driven the recent bullish narrative, a month after the fourth BTC halving event.
Bitcoin (BTC) price rallied over 7 percent in the past 24 hours to reclaim $66K. The flagship coin registered almost double its daily average traded volume in the past 24 hours to about $42 billion on Thursday during the early London session.
The sudden Bitcoin price pump was triggered by the United States inflation data from the Bureau of Labor Statistics involving the Consumer Price Index (CPI). Notably, the US CPI monthly inflation data came in less than expected, 0.3 percent, thus exaggerating the weakening of the US dollar against global currencies.
The recent inflation data caused major stock indexes led by the S&P 500 Index (SPX) to pump against the US dollar. Moreover, more investors are bullish on the stock market and crypto assets amid upcoming US elections.
According to the latest market data, the S&P 500 pumped around 1.17 percent to reach a new all-time high of about 5,308.15 during the extended session. Similarly, the Nasdaq Composite Index (Nasdaq: COMP) pumped 1.4 percent on Wednesday to close the day at 16,742.
Bitcoin Price Signals Inevitable Pump to New ATH
After being trapped in a correction mode for the past two months, Bitcoin price invalidated the downtrend with the recent pump. From a technical standpoint, Bitcoin price closed Wednesday above the daily 50 Moving Average (MA) and also above the 50 Relative Strength Index (RSI).
As a result, Bitcoin price against the US dollar needs to consistently close above $67K in the coming weeks to validate a bullish reversal from a daily head and shoulder (H&S) pattern.
Bitcoin’s bullish momentum is bolstered by the rising institutional demand via spot BTC ETFs. According to on-chain data analysis conducted by Santiment, the seven largest spot BTC ETFs registered a daily traded volume of around $5.65 billion on Wednesday, the highest since March 24, 2024.
📈 #BitcoinETF volume is picking up major steam, with the 7 largest #ETF's hitting $5.65B, the highest day since March 24th. Gone are the days of whales only accumulating #onchain. Keep a close eye on whether momentum stays high with our free dashboard: https://t.co/fyI2IS1U79 pic.twitter.com/77ZD0e7gpz
— Santiment (@santimentfeed) May 16, 2024
According to veteran trader Peter Brandt, Bitcoin price is still on the precipice of a major bullish uproar to a new all-time high in the coming weeks. Furthermore, the analyst believes the flagship coin has already completed its recent market correction based on the hump, slump, bump, pump (HSBP) indicator.
I have shown this chart many times in the past in slightly different iterations and it remains my preferred interpretation $BTC pic.twitter.com/dr47wYBsw3
— Peter Brandt (@PeterLBrandt) May 15, 2024
Midterm Price Target
Bitcoin price has been on a rising trajectory in the past year, which yielded the ATH around $73K. From technical support, Bitcoin price must consistently close above the resistance/support level of around $67k in the coming weeks to validate the bullish momentum.
In case Bitcoin price against the US dollar closes above $67K, the flagship coin will be well primed to pump towards $100K soon. On the other hand, if Bitcoin price fails to get over $67K in the coming weeks, $50K will be inevitable. Meanwhile, Bitcoin traders should prudently watch that dominance, which has been indicating inevitable crypto cash rotation to the altcoin market.
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