Bitcoin Surges to $70,000 with Positive On-Chain Momentum

Bitcoin Surges to $70,000 with Positive On-Chain Momentum

Bitcoin surged to a new milestone, surpassing the previous all-time high and breaching the $70,000 mark, a level higher than the peak observed in November 2021.
However, a robust wave of profit-taking ensued, causing a retracement in Bitcoin’s price from its pinnacle. The rationale behind the sell-off during the bullish market remains unclear, but it predominantly emanated from long-standing miners deciding to capitalize on the upward momentum. Notably, data from IntoTheBlock indicates a robust support zone in the range of $65,053 to $67,008, providing a foundation for the cryptocurrency’s value.
Intriguingly, approximately 802,000 addresses strategically acquired 687,000 BTC at an average price of $65,960, reinforcing the optimistic narrative surrounding Bitcoin. The IOMAP data reveals a scarcity of substantial resistance levels, potentially paving the way for a renewed surge beyond the $70,000 threshold in the coming weekend.
Bitcoin IOMAP chart | IntoTheBlock
The on-chain flows from exchanges portray an upward trend, underscoring the prevailing positive sentiment in the market. Following a minor correction to 18,670 BTC on February 18, the aggregate exchange outflow volume surged to 34,410 BTC. This surge indicates a preference among investors to hold BTC off exchanges when not contemplating short-term sales. Consequently, the increased outflows hint at a potential alleviation of selling pressure, contributing to a prospective upswing in Bitcoin prices and reinforcing the cryptocurrency’s bullish outlook.
Nearly two months have elapsed since the approval of the inaugural Bitcoin Spot ETF by the SEC in the United States. BlackRock’s IBIT-led ETFs have outperformed expectations, achieving milestones that took gold ETFs years to reach.
Bitcoin price chart | Tradingview
The cumulative inflow into these ETFs has reached an impressive $9.37 billion, signaling an unexpected surge in demand for BTC. The sentiment surrounding Bitcoin is gaining stability as a growing number of institutions and retail investors are opting for exposure through ETFs.
Related: SEC Delays Approval of Options Trading on Bitcoin ETFs
Renowned Bloomberg ETF analyst Eric Balchunas attributes this ETF growth to asset managers’ eagerness to invest, increasing retail interest, and what he terms as the “ETF effect.” This phenomenon occurs when individuals anticipate heightened inflows and strategically position themselves to capitalize on potential price upswings. According to Balchunas, IBIT is setting itself apart from the competition and exhibits the potential to become the most successful ETF in the Bitcoin market.