Bitcoin has surpassed the $70,000 threshold, with altcoins consolidating their key support levels. This raises the question: is it an opportune moment to buy Bitcoin and altcoins? Experts provide the latest forecasts and price assessments.
Will Cryptocurrencies Continue to Soar?
On the eve of a pivotal Ethereum ETF decision, Bitcoin surged past $70,000, with Ethereum climbing back above $3,700. Bitcoin hit $71,400 on May 20, marking its highest level in six weeks since April 9. The breakthrough of the $70,000 psychological barrier has bolstered the funding rate in futures trading, which reached 0.0187%, the highest since April 9.
The positive shift in the funding rate after a month of stagnation indicates growing investor confidence in the ongoing upward trend. Another key factor bolstering this belief is the inverse head and shoulders pattern, which experts predicted accurately.
Prominent crypto analyst Moustache has continued to forecast further gains for Bitcoin. He emphasized the importance of not overlooking the inverse head and shoulders formation, stating that altcoins are expected to follow Bitcoin’s upward trajectory.
Bitcoin and Altcoins Forecast
Bitcoin’s recent rally brings to mind the July 2021 surge from $31,000 to $69,000 in November. Should similar patterns repeat, Bitcoin could reach even higher peaks in the coming weeks. Crypto analyst Jelle also referenced the bull run of 2017, noting similarities in the market‘s current behavior.
There has been a notable resurgence in net inflows for Spot Bitcoin ETFs over the past two weeks, following three consecutive weeks of net outflows. According to Dune, U.S. Bitcoin ETFs saw over $200 million in inflows last week and $413 million during the week of May 6. The significant net inflows for GBTC further bolster market optimism.
Actionable Insights for Investors
Investors can draw several valuable takeaways from the recent market developments:
- Bitcoin’s surpassing of $70,000 is a strong bullish signal.
- The improving funding rate in futures trading suggests increasing market confidence.
- The resurgence in ETF net inflows indicates renewed institutional interest.
- Monitoring chart patterns like the inverse head and shoulders can provide strategic insights.
These factors collectively point to a potential continuation of the bullish trend in the cryptocurrency market.