Bitcoin has surged past the $71,000 mark, driven by significant spot Ethereum exchange-traded fund (ETF) activity. On-chain indicators suggest the onset of a bull market, though some signals indicate possible topping patterns.
A recent support bounce near $60,000 sparked renewed investor interest, with Farside Investors reporting $950 million in inflows last week.
The BTC/USDT daily chart shows Bitcoin trading at $71,000, with a 20-day EMA at $65,347.02 and a positive RSI. Overcoming the $68,000 resistance points to a potential rise to $73,777, though this could trigger bearish reactions.
Bitcoin’s 51% year-to-date gain reflects investor expectations of U.S. monetary expansion, with the M2 monetary base surpassing $21.0 trillion in April 2024.
Exchange BTC reserves have dropped to a seven-year low, with only 1,918,417 BTC available on major trading platforms, according to CryptoQuant. The recent bitcoin halving event and the current scarcity of bitcoins further reinforce the positive correlation, making it hard to argue that those favoring the long call are wrong.
