Crypto market sentiment improved rapidly after economic data this week showed weak U.S. inflation and institutions disclosed large holdings of spot Bitcoin ETFs.
Bitpush data showed that the crypto market was on a rising trend at the end of the week. Bitcoin broke through $67,000 for the first time since April 23, triggering a rebound in the entire market. Ethereum (ETH) rose 5.3% and Solana (SOL ) rose 7.7%. The total market value of cryptocurrencies increased by 3% to $2.42 trillion.
Altcoin closed the week on a positive note, with only 12 of the top 200 tokens in the red on Friday, and none of them fell more than 3%.
DeFi project 0x Protocol (ZRX) led the way with a 16.6% gain, followed by Biconomy (BICO) at 16.5% and Gnosis (GNO) at 13.6%. Beam (BEAM) had the biggest drop, down 2.9%, Notcoin (NOT) down 2.1% and Core (CORE) down 2%.
The overall cryptocurrency market cap is currently $2.42 trillion, with Bitcoin’s dominance rate at 54.4%.
In traditional markets, the three major U.S. stock indices hit new highs earlier in the week and ended mixed this week. The S&P and Dow Jones rose 0.12% and 0.34% respectively, while the Nasdaq fell 0.07%, with the Dow closing above 40,000 for the first time in history.
Golden cross 'coming soon' , bullish signs emerge
Bitcoin surged above $66,000 early Friday, recovering from Thursday’s drop below $65,000. Analysts at Secure Digital Markets said: “The price started to pull back right at our resistance target of $67,500, and as long as Bitcoin remains above the 50-day moving average, we expect the upward momentum to continue.”
This week, several institutional investors disclosed large BTC ETF holdings.
For example, Morgan Stanley yesterday reported a $269.9 million investment in Grayscale’s GBTC. Izzy Englander’s $64 billion Millennium Management disclosed a $2 billion position in BlackRock’s iShares Bitcoin Trust (IBIT) at the end of the first quarter, while Paul Singer’s $70 billion Elliott Management also disclosed a sizeable Bitcoin ETF holding. The Wisconsin Investment Board, which manages state retirement assets, holds a stake worth about $100 million in BlackRock’s IBIT.
Market analyst Mustache also highlighted Bitcoin’s moving averages, noting that a golden crossover on the 12-hour chart is “coming soon.”
He said on X platform: "BTC Golden Cross (12-hour chart) is coming. The last bullish cross was six months ago. Since then, Bitcoin has risen by more than 170%."
A golden crossover occurs when a short-term moving average crosses above a long-term moving average. The last time this occurred was in October, just before Bitcoin rallied from below $30,000 to new highs near $74,000 over the next four months.
Data provided by Farside showed that inflows into spot bitcoin exchange-traded funds (ETFs) extended to a four-day streak on Thursday, highlighting that bitcoin's price typically performs well when ETFs record net inflows.
Eric Balchunas, senior ETF analyst at Bloomberg, said recent inflows have lifted total assets under management to $12.3 billion since launch, which he called a “critical number.”
He said: "Bitcoin ETFs have seen inflows of $130 million for two consecutive weeks, offsetting all of April's negative inflows and bringing it back to near its high of $1.23 billion net since launch, a key number that, in my opinion, calculates inflows and outflows (which is normal)."
“The last two months have shown why it’s best not to get emotional about flows, which are part of the life of an ETF,” Balchunas said. “They will deliver long-term positive returns. The amounts on both sides are small relative to AUM, maybe 1-2%, so if you think about it, it’s not always outflows or inflows.”
Kevin Svenson, a cryptocurrency analyst and trader, said an inverse head and shoulders pattern emerging on Bitcoin’s chart is sending a bullish signal similar to that seen in mid-March, just before it rallied to a new all-time high.
He said: “BTC is breaking out of a reversal bottom pattern, so I would say that is really bullish… Bitcoin is also above a falling trendline on the relative strength index (RSI) on the daily chart. This is just a signal to continue to rise. This is not different from this area in early 2024, when it consolidated sideways and found downward sloping resistance on the RSI, and then broke out and set a new all-time high. Bitcoin is playing out the exact same scenario again, which may push it to a new all-time high.”
Svenson said that Bitcoin is in the fourth stage of a parabolic curve pattern and could reach a peak of $90,000. He reminded traders that in this bull cycle, considering that the halving has just been completed, the BTC price may be above $90,000, but it may need to adjust before reaching that number.
Svenson concluded: “This could mean Bitcoin reaches our parabolic trend target of $90,000 before seeing the trend break down in sideways consolidation. This would then push higher to create a larger, broader parabolic trend.”
Author: BitpushNews Mary Liu
Twitter: https://twitter.com/BitpushNews
BitPush TG Exchange Group: https://t.me/BitPushCommunity
Bitpush TG subscription: https://t.me/bitpush
Btok subscription: https://btok360.com/bitpush
