Bitcoin, the enigmatic and much-coveted digital currency, has seen approximately a 2% price hike in the past day, culminating with a value surpassing a critical $70,000 threshold – a line in the sand that previously seemed insurmountable. This rather impressive feat has incited a renewed sense of optimism among Bitcoin bulls, as they speculate about potential additional gains in the near future.
Willy Woo, a highly regarded on-chain analyst, has postulated that Bitcoin could potentially skyrocket even beyond its current advantageous position. Woo’s projections cite a pivotal resistance level of $72,000. Upon piercing this threshold, Bitcoin could potentially see an unprecedented surge of value.
One must remember that this comes after a remarkable surge on May 20 which propelled Bitcoin from a lurid lull of lower lows, with valuations around $56,500, to a new height surpassing $66,000. However, this impressive ascent didn’t elicit the expected bullish response. Currently, Bitcoin is navigating within a broader value range, the borders of which are set between the initial local support level of $72,000 and an all-time high of $73,800.
Speculators and enthusiasts contend that breaking through the $72,000 benchmark – a level tested frequently but never surpassed in recent weeks – could potentially stimulate an expansion of Bitcoin prices. An ideal catalyst for such a movement would be an escalating trade volume, signaling the dawn of another upswing, and creating an uptick in demand.
Woo’s predictions hinge on Bitcoin attaining and holding a $72,000 valuation. He suggests that upon achieving this milestone, the coin’s value could rapidly swell and conceivably reach $75,000, spurred by a phenomenon known as a ‘short squeeze.’ This pertains to a scenario where numerous short positions are compelled to close, further stoking Bitcoin’s value.
Woo’s analytical prowess proposes that nearly $1.5 billion worth of such short positions could be liquidated, propelling Bitcoin to rise to the $75,000 mark. If this prediction comes to fruition, Bitcoin could achieve yet another new all-time high, only seven weeks after the Halving.
Adding further fuel to this bullish sentiment is the noticeable surge in institutional cash inflows into spot Bitcoin exchange-traded funds (ETFs). On June 4, spot Bitcoin ETF issuers acquired an impressive $886.6 million worth of Bitcoin.
Respected and established financial institutions such as Fidelity and BlackRock procured substantial amounts of the digital currency. Moreover, Grayscale has also seen a significant inflow of investments, recording the second-highest daily volume since the launch of spot Bitcoin ETFs in January 2024.
In this context of surging institutional demand, Bitcoin continues its rock-climbing expedition, with values now hovering around $71,500. Irrespective of minor hiccups, the prices persist above the $70,000 mark, solidifying the bull spike observed on June 3.
Given the Thailand Securities and Exchange Commission (SEC)’s recent endorsement of the first spot Bitcoin ETF in their nation, aimed principally at affluent and institutional investors, the demand for these intricate financial derivatives seems poised only to escalate. This trend of approval and acceptance is anticipated to spread, with a similar product having recently debuted in Australia.
