Bitcoin Reclaims Key $70,000 Level
Bitcoin, the largest cryptocurrency by market capitalization, rebounded more than 5% on Monday to reclaim the key $70,000 level after a period of retracement driven by net outflows in spot Bitcoin ETFs.
Factors Behind Bitcoin’s Rebound
- Analysts cited easing of ETF outflows as a contributing factor to Bitcoin’s rebound.
- Bullish technical indicators and favorable macro fundamentals were also mentioned as reasons for the price increase.
- Bitcoin found support near the key 38.2% Fibonacci retracement level around $60,000.
Expert Insights
Galaxy Digital’s Alex Thorn mentioned that the renewed buying interest in Bitcoin was likely due to a pause in bitcoin ETF selling and improving technical indicators. Thorn highlighted that retracements are common in Bitcoin bull market cycles.
Swan Bitcoin analyst Sam Callahan attributed Bitcoin’s rebound to improving macro fundamentals, especially after the Federal Reserve’s interest rate policy meeting last week.
Market Sentiment and Technical Analysis
Data from CoinGlass showed that bitcoin short position liquidations were lower than average, indicating a positive sentiment among investors. The price of Bitcoin found buying support at the key 38.2% Fibonacci retracement level and is approaching its previous record high of $69,000.
A breakout above the current record high at $73,835.57 could signal further bullish momentum, while a reversal may lead to a deeper retracement towards the 50-day moving average.
Bitcoin was trading at about $70,300 as of Monday evening.
