Decoding Bitcoin’s Potential Surge to $71K: Key Factors to Watch Out For

Key Points

• Bitcoin retests key support level at $63,193.80, signaling a potential bullish reversal.
• Demand for spot Bitcoin ETFs outpaces new supply, indicating a strong accumulation phase.

Bitcoin [BTC] has once again tested the crucial support level of $63,193.80. This level has previously proven to be a robust support, and the bounce back from it hints at a possible bullish trend.

The price movement of Bitcoin indicates that a strong foundation has been established for a potential bullish rally. The price was eyeing the next significant support level of $71,972.46 at the time of writing.

Spot Bitcoin ETF Demand Surpasses New Supply

There are multiple bullish indicators supporting the upward trend. One such indicator is the rapid increase in demand for spot Bitcoin ETFs, which is outpacing the supply in the post-halving period.

As per a recent tweet by crypto analyst Ali, this surge in demand signifies a robust accumulation phase. The imbalance between the available coins and the increased buying pressure has created a favorable environment for further price appreciation.

Strong Fundamentals

The momentum surrounding the Bitcoin Market Value to Realized Value (MVRV) further bolsters the positive outlook. According to Glassnode, this suggests a continuation of BTC 2024 as investors’ profitability remains in the green. MVRV indicates a healthy market sentiment towards BTC for the long term.

The same analyst had previously predicted that Bitcoin could rebound to $65,200 to liquidate $42.16 million in short positions. These predictions have now come true.

At press time, the liquidation heat map displayed a bullish bias in the market, indicating a potential bullish rally for Bitcoin. The current price movements, coupled with robust demand and positive investor sentiment, suggest a bullish phase ahead. The $63,193.80 support level provides a solid platform for further gains.