Bitcoin surged past the $71,000 resistance line on Wednesday morning, resulting in significant losses for numerous short sellers.
This dynamic digital asset class has shown bullish tendencies, especially after surpassing an all-time high on April 20. A notable event for Bitcoin is the “halving,” which happens every four years and reduces mining rewards by 50%.
Historically, Bitcoin’s bull market cycles have exhibited almost perfect symmetry around these halving dates.
Despite Bitcoin dropping from its all-time high of $73,679 on March 14, analyst Brandt believes there’s a 25% chance that the cryptocurrency has already hit its peak for this bull market, as the gains from each bull cycle appear to be diminishing compared to previous ones.
In the past 24 hours, 41,265 traders were liquidated, with total liquidations amounting to $115.79 million. The largest single liquidation order occurred on Binance, where an ETHBTC position valued at $7.35 million was liquidated.
After a market downturn from mid-April to early May, which saw negative net inflows and even outflows from significant ETFs like BlackRock’s IBIT, inflow activity has recently increased, reflecting an overall bullish sentiment.
Preliminary data indicates that U.S.-based spot Bitcoin exchange-traded funds (ETFs) experienced their second-best day ever in terms of net inflows, totaling $886.6 million.
Farside Investors’ preliminary data shows that the Fidelity Wise Origin Bitcoin Fund (FBTC) received the largest inflow at $378.7 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) at $274.4 million. The ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $138.7 million, making it the third-best performer.
Additionally, the Grayscale Bitcoin Trust (GBTC) had a unique inflow day of $28.2 million, marking the seventh inflow day since it transitioned from a closed-end fund to a spot exchange-traded fund in January.
In Thailand, One Asset Management (ONEAM) has gained approval from the Securities and Exchange Commission (SEC) to develop a fund that will invest in spot Bitcoin exchange-traded funds (ETFs).
Considering Bitcoin’s historical price movements before and after halving events, it may be poised for a significant high. Specifically, the number of weeks between the start of each bull market cycle—defined as the low following a drop of at least 75%—and the halving dates has almost always equaled the number of weeks from the halving dates to the subsequent bull market highs.
Price action currently highlights Bitcoin’s bullish trend. Although the Bitcoin market is experiencing a temporary phase of uncertainty, the medium- and long-term trend remains favorable according to the 50-day moving average and the Dow theory.
These indicators, along with upward movement below the Bitcoin price, support this observation. Despite this, oscillators and the price itself suggest that while Bitcoin is showing signs of strengthening, it still exhibits some weakness.
