Bitcoin Soars Above $70,000 on Renewed Bullish Sentiment

Bitcoin (BTC) surged over 6.8% in the past 24 hours, reaching around $71,273 on Tuesday during the early Asian session. This significant

Written by: Arslan Ali Butt • Tuesday, May 21, 2024 • 1 min read

• Last updated: Tuesday, May 21, 2024

Bitcoin Soars Above $70,000 on Renewed Bullish Sentiment

Bitcoin (BTC) surged over 6.8% in the past 24 hours, reaching around $71,273 on Tuesday during the early Asian session. This significant price increase comes amidst a broader crypto market recovery following a two-month correction period.

Factors Fueling the Bitcoin Rally

Craig Wright Loses COPA Lawsuit: The High Court of England and Wales dismissed Craig Wright’s claim to be Satoshi Nakamoto, safeguarding Bitcoin’s open-source development. This removes uncertainty surrounding the future direction of the software.
Increased Whale Activity: On-chain data suggests a rise in Bitcoin accumulation by whale traders, indicating long-term bullish sentiment.
Spot Ethereum ETF Optimism: Positive news regarding potential approval of a spot Ethereum ETF in the US may have indirectly benefited Bitcoin by boosting overall market confidence.

Bitcoin Futures Market Avoids Overheating

The Bitcoin funding rate, an indicator of sentiment in the derivatives market, remains relatively low. While historically high funding rates can precede price corrections, the current levels suggest a less frothy market compared to previous rallies.

Venezuela Bans Crypto Mining to Conserve Energy

The Venezuelan government has banned all crypto mining activities to alleviate pressure on the nation’s struggling power grid. This unexpected move may impact Venezuelans who relied on crypto mining for income.

BTC/USD Technical Analysis Points to Continued Uptrend

Bitcoin successfully surpassed the $70,000 resistance zone and is currently trading above $71,000. A bullish trend line on the hourly chart suggests further upside potential unless the price falls below $68,800.

Key resistance levels lie at $71,850, $72,000, and $72,500, with potential for further gains towards $74,400 if breached.

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ABOUT THE AUTHOR See More

Arslan Ali Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Ali Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.