Cryptocurrency investors have been forced to endure another round of sideways trading after the hype surrounding the approval of Ethereum ETFs cooled. The hope for a major breakout above $70,000 and to new record highs slowly faded last week as BTC corrected below $66,400. Nevertheless, the Bitcoin price forecast reveals a strong technical structure—one that could propel the bellwether cryptocurrency above $70,000.

Exchange Bitcoin Futures Open Interest Surges To $33 Billion

The futures market often gives a sneak peek into the outlook of Bitcoin. As open interest increases, it shows that investors are willing to bet on higher prices.

Coinglass data reveals that the Bitcoin futures open interest is on a strong rise to $33 billion. This increase started in early May, as Bitcoin price rebounded from the fall in April to $56,500.

Should the surge continue, more investors will find Bitcoin attractive. The potential breakout above $70,000 could also ignite FOMO, boosting the momentum in the market to sustain the uptrend.

Bitcoin futures open interest | Coinglass

A strong fundamental structure according to on-chain data from IntoTheBlock (ITB) backs a bullish outlook. Robust support levels as seen in the IOMAP model signal that investors are willing to hold onto their positions for more gains. The narrowing resistance zones are another sign that Bitcoin price is on the cusp of a breakout.

Bitcoin IOMAP model | IntoTheBlock

Bitcoin Price Forecast: Nurturing The Uptrend

Recovery is ongoing, with Bitcoin sitting above $69,000 during US business hours on Monday. The path of least resistance has been confirmed to be upward based on the four-hour Moving Average Convergence Divergence (MACD).

An incoming buy signal will make BTC more attractive this week. Moreover, reclaiming support above $70,000 may ignite FOMO as investors shift their attention to new record highs and the next major milestone at $80,000.

Apart from the hurdle at $70,000, other resistance areas traders must keep an eye on are $72,000 and the all-time high near $74,000.

Bitcoin price forecast chart | Tradingview

Traders must plan accordingly keeping in mind that another rejection is likely at $70,000. If this happens, some people will choose to sell, thus destabilizing the market further and resulting in losses.

Key support levels include the 50-day Exponential Moving Average (EMA) at $68,250, the upper ascending trendline, and the $66,000 level. Should declines intensify due to panic selling, Bitcoin price may be forced to drop to the lower trend line, which currently coincides with the 200-day EMA.

A correction to $60,000 cannot also be ruled out considering that the crypto market is very volatile.

The post Bitcoin Price Forecast: BTC Poised To Reclaim $70,000, Rally To $80,000 This Week? appeared first on CoinGape.

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Filed under: News - @ May 27, 2024 3:16 pm