Bitcoin price has increased by about 2% in the last 24 hours, trending above $70,000, which is a psychological level. As bulls brace for further gains, supply chain analyst Willy Woo he believes the coin may rise even higher after breaking the key resistance level at $72,000.
Will Bitcoin Rise to $75,000 Due to Brief Stress?
Even after the May 20 spike that lifted the coin above $66,000 after days of lower lows, taking Bitcoin to $56,500, the bulls did not follow suit. As it stands, Bitcoin is trading in a wider range, capped at $72,000, the first local support, and $73,800, the all-time high.
However, a breach would be significant given the importance of $72,000, a level that has been retested but not broken in the past few weeks. One explanation for the potential price expansion is that a breakout, ideally with an raise in volume, could signal the beginning of another price raise, attracting demand.
In Woo’s case, a close of the trade at $72,000 could cause prices to rise quickly and even break above $75,000 due to brief squeeze. Once the bulls break through and close above this interest level, there will be a wave of liquidation where many brief positions will be forced to close, causing prices to rise.
Woo’s analysis shows that about $1.5 billion worth of brief positions will be liquidated “up to $75,000.” If this happens, it is highly likely that Bitcoin will record novel all-time highs roughly seven weeks after the halving.
The inflow of funds to discover BTC ETFs is increasing, demand will continue to grow
At the heart of this bullish sentiment is the impressive raise in institutional inflows into Bitcoin Exchange Spot Funds (ETFs) on June 4. By sosovalue dataspot Bitcoin ETF issuers purchased $886.6 million worth of BTC yesterday.
Fidelity bought BTC for $378.7 million, while BlackRock, behind the largest spot BTC ETF, bought the coin worth $274.4 million. Bitwise also showed significant demand, adding $61 million in BTC.
Interestingly, Grayscale also saw an inflow, adding $28.2 million of BTC on behalf of its clients. This inflow was the second-largest daily inflow since the launch of spot Bitcoin ETFs in January 2024.
With this wave of institutional demand, Bitcoin is above $71,500. Most importantly, prices remain above $70,000, confirming the bullish rally from the mid-BB on June 3.
The demand for these elaborate derivatives will only raise. Yesterday, the Securities and Exchange Commission of Thailand (SEC) approved the country’s first spot Bitcoin ETF. The product will be available only to wealthy and institutional investors. The green lighting comes after a similar product was launched in Australia.
Feature image from DALLE, chart from TradingView
