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Bitcoin Price Prediction as BTC Breaks Above $65,000 Resistance: Have Bulls Regained Control?
Last Updated: May 17, 2024 5:17am EDT | 4 minute read
Bitcoin (BTC) held steady above the $66,000 mark, hitting an intraday high of $66,500. Bitcoin price forecast now indicates strong bullish momentum, driven by growing institutional interest. BlackRock’s iShares Bitcoin Trust (IBIT) has attracted significant investment, while CME Group’s planned entry into Bitcoin spot trading is expected to increase market liquidity and demand.
BlackRock’s iShares Bitcoin Trust (IBIT) shows strong institutional interest
BlackRock’s iShares Bitcoin Trust (IBIT) has seen impressive performance since its inception. The trust has attracted considerable attention, with 414 individual or institutional investors reported in the first few months. This level of interest is notable, as it is rare for a new investment to initially have even 20 owners.
Since its launch in January, IBIT grew from scratch managing $16.65 billion in assets, making it the most popular Bitcoin investment for regular investors. Major companies such as Millennium Management, Schonfeld Strategic Advisors and Aristeia Capital have invested in IBIT.
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IBIT’s rapid growth to $16.65 billion in assets under management indicates strong institutional interest, which is positively impacting the price of Bitcoin.
- Significant Attention: 414 investors in the first months.
- Rapid growth: IBIT now manages $16.65 billion in assets.
- Institutional interest: Large firms such as Millennium Management and Schonfeld Strategic Advisors are investors.
CME Group’s entry into Bitcoin spot trading
CME Group, a major futures exchange based in Chicago, plans to enter Bitcoin spot trading due to growing demand, as reported by the Financial Times. The exact launch date is still uncertain, as the plan is being finalized. CME has a significant history in the cryptocurrency market, having introduced Bitcoin futures in December 2017 and micro-Bitcoin futures in May 2021 for smaller contracts.
Currently, CME leads in Bitcoin futures open interest with $9 billion and launched Bitcoin options in early 2020. However, it trails Deribit in options value. Demand for spot trading has surged, following the introduction of several spot ETFs earlier this year, with Bitcoin spot ETFs attracting inflows of $303 million on Wednesday.
As a result, CME Group’s move into Bitcoin spot trading could have a positive impact on the price of Bitcoin by increasing liquidity and institutional participation.
- ECM registration: Plans to get into Bitcoin spot trading.
- Market leader: Leader in Bitcoin futures open interest with $9 billion.
- Increase in demand: Spot Bitcoin ETFs recently saw inflows of $303 million.
Institutional investments in Bitcoin ETFs and their impact on price
Matt Hougan, Chief Investment Officer at Bitwise, is optimistic about this spot Bitcoin Exchange Traded Funds (ETFs) thanks to growing institutional investments, which exceeded initial expectations. Recent data indicates that over 900 professional firms now invest in Bitcoin ETFs, holding a total of $3.5 billion. This surge marks a significant development in the cryptocurrency market, demonstrating the growing institutional interest in Bitcoin.
Despite this growth, professional investors currently hold only 7-10% of Bitcoin ETFs’ total assets under management (AUM), indicating substantial potential for further expansion. Hougan noted that institutions typically follow a progressive investment trajectory, suggesting significant future allocations that could drive Bitcoin ETF growth and market participation.
- Institutional surge: Over 900 companies invest $3.5 billion in Bitcoin ETFs.
- Potential growth: Professional investors hold only 7-10% of Bitcoin ETF assets.
- Future assignments: It is expected to further stimulate Bitcoin ETF growth and market activity.
Bitcoin price prediction
Bitcoin price prediction indicates a potential retracement after crossing the $66,600 mark. Bitcoin completed a 38.2% Fibonacci retracement to around $64,750, which now serves as significant support and today’s pivot point. As long as Bitcoin remains above this level, a bullish bounce is likely.
In this context, the immediate resistance is at the $66,600 level. If Bitcoin breaks above this level, the next resistance levels to watch are $67,820 and $69,000.
On the downside, if Bitcoin falls below the $64,750 support, it could fall further to $63,300. The 50-day exponential moving average (EMA) on the four-hour chart provides further support around $63,150, increasing the likelihood of a bullish bounce. However, if selling pressure increases and Bitcoin breaks out of the 50-day EMA, further support levels at $61,500 and $61,200 are expected.
The Relative Strength Index (RSI) has broken out of the overbought zone and is currently around 62, indicating continued bullish momentum.
Current trend: Monitor the $64,750 and $63,300 levels closely, as they are key for buyers. The probability of an uptrend remains strong above these levels.
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