Will Bitcoin fall below $70,000 after the latest rejection?
The cryptocurrency started a fresh rally over the past few hours, with its price surging above $74,000 before suffering a quick rejection.
The broader outlook remains bearish as BTC is still well below its all-time high of $126,000 last October. Analysts have highlighted several key resistance levels that must be recovered before the bulls can regain full control.
More profit ahead?
The impressive resurgence comes amid recent statements by Donald Trump that Iran is “about to capitulate” and reports that the newly elected leader of the Asian nation, Mujtaba Khamenei (who is the son of the late Ali Khamenei) has been “probably discredited”.
The BTC pump has caught the attention of many market watchers and some expect the rally to continue in the short term. X user Ted noted that Coinbase Premium is growing, which shows the demand in the first place. He believes that holding more than $70,000 can lead to a further profit of about $76,000.
The analyst, who goes by the name Ardi on X, stated that the leading digital asset needs to turn the $74,000 resistance into support to really “start to reconsider the macro burn”. If it achieves that, the cost could rise to $85,000, he added. At the same time, he warned that anything below this mark “is just a price that sets the macro lower in a downtrend.”
Certain indicators suggest that the asset may continue to move north. Data from SoSoValue shows that inflows into Spot BTC ETFs have exceeded outflows over the past few days. This is a clear development factor that shows that institutional investors, such as pension funds, hedge funds and asset managers, are increasing their exposure to cryptocurrencies. As inflows increase, 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 decreasing amount of coins sitting on crypto exchanges. According to CryptoQuant, that number dropped to around 2.74 million today, the lowest level since late 2020. This development suggests that investors are moving their assets in self-interested ways and are not in a rush to cash out.
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A short-term comeback on the horizon?
Other indicators, such as the Relative Strength Index (RSI), indicate that BTC’s significant recovery may soon be replaced by a correction. The technical analysis tool measures the speed and magnitude of recent price changes to give traders an idea of ​​potential reversal points. It ranges from 0 to 100, with readings above 70 indicating that the asset is overbought and preparing for a decline. As of press time, the RSI is at 81.
BTC Market Value to Realized Value (MVRV) is also worth analyzing. It compares the current value of all coins to the price people originally paid to acquire their assets. In recent months, this ratio has decreased and today it is around 1.3. According to CryptoQuant, readings below 1 typically indicate a downtrend, which means the bear market has not yet fully opened.
Earlier this week, multiple analysts warned that the price of BTC could reach $50,000 and possibly lower by the end of this year.
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