Bitcoin broke the $71,000 resistance line on Wednesday morning, causing significant losses for a large number of short sellers.
The dynamic digital asset class has shown signs of bullishness, particularly after crossing an all-time high on April 20. The 50% reduction in mining rewards that occurs every four years in Bitcoin is known as the “halving” event, and previous bull market cycles have “represented almost perfect symmetry” around these dates.
Although Bitcoin has dropped from its all-time high of $73,679 on March 14, Brandt thinks there is a 25% probability that the cryptocurrency has already reached a bull market peak because the gains from each bull cycle are becoming less than those from the previous one.
In the past 24 hours, 41,265 traders were liquidated, and the total liquidations come in at $115.79 million The largest single liquidation order happened on Binance – ETHBTC valued $7.35 million
Record inflow in Spot Bitcoin ETFs
Following a meltdown between mid-April and early May, which witnessed negative net inflows on some days and even outflows from big ETFs like BlackRock’s IBIT, inflow activity has recently increased amid an overall bullish sentiment.
Preliminary data indicates that US-based spot Bitcoin exchange-traded funds (ETFs) saw their second-best ever combined net inflow day of $886.6 million.
According to preliminary data from Farside Investors, the Fidelity Wise Origin Bitcoin Fund (FBTC) attracted the greatest inflow at $378.7 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) at $274.4 million.
The ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $138.7 million, performing the third best.
Farside data also showed that the Grayscale Bitcoin Trust (GBTC) experienced a unique inflow day of $28.2 million. This is the seventh inflow day since the fund switched in January from a closed-end fund to a spot exchange-traded fund.
Consequently, One Asset Management (ONEAM) has received approval from the Securities and Exchange Commission (SEC) of Thailand to develop a fund that would invest in spot Bitcoin exchange-traded funds (ETFs).
Given its past price movement before and after a halving event, Bitcoin might be headed for a big high. In particular, the number of weeks that separate the beginning of each bull market cycle—that is, the low that follows a loss of at least 75%—from the halving dates has nearly always been the same as the number of weeks that separate the halving dates from the ensuing highs of the bull market.
Price action highlights Bitcoin’s bullish run. The Bitcoin market is going through a transient phase of uncertainty. It should be emphasized, though, that the 50-day moving average and the Dow theory both indicate that the medium- and long-term trend is still favorable.
These can support this observation because they are heading upward and below the Bitcoin price. Regarding the optimistic characteristics of the cryptocurrency, oscillators and the price itself indicate that while it appears to be strengthening, it is still quite weak.