On Monday, the Bitcoin fear and greed index rallied to 74, as its underlying value surged past $69,000 for the first time since early June. This surge comes after last week’s bullish signal on Bitcoin, which closed with a dragonfly doji candlestick and had a fantastic rally over the weekend. The major cryptocurrency recorded a daily high of about $69,711, suggesting that it could break out to higher all-time-high (ATH).
Source: CoinMarketCap
Bitcoin Technical Indicators Show Strength
In terms of technical analysis, Bitcoin has consistently been closing above the 50-day and 200-day moving averages (MAs) in recent weeks. Bitcoin’s ability to close above these levels puts it in a position to retest resistance between $70k and $73k. A new ATH is possible if BTC manages to consistently close above $72k. Nevertheless, there might be a reversal towards established support of around $61,000 before rebounding towards an ATH.
During that week—ending Sunday, July 28th—Bitcoin dominance broke beyond 56 percent for the first time since April this year. The abysmal showing of recently authorized spot Ethereum ETFs in America has significantly boosted BTC prices.
Over the same period of four weeks’ duration ending on August 1st this year, US-based spot bitcoin exchange-traded funds garnered just under three billion dollars net inflow while us-based spot ether ETFs had seen roughly three hundred forty-one million dollars net cash outflow from inception.
At present, however, institutional investors are buying up Bitcoin heavily, expecting further growth rates to still prevail into Q4 this year, while some open interest data suggest that they anticipate imminent breakout rally even predicted by market observers.
Record Open Interest Indicates Imminent Breakout
The total open interest for Bitcoin futures across all exchanges reached a fresh record high of $39.46 billion on Tuesday, indicating increased investor demand for BTC according to this metric that monitors a total number of unclosed positions in an underlying asset, thereby implying potential breakout signals alongside other metrics pointing towards new ATH.
More than 75% of Bitcoin’s short-term holders were profitable as at July 24th, implying possible further up momentum. Conversely, Bitcoin is anticipated to regain a larger share of the total crypto market cap as it continues to dominate thus underpinning a bullish outlook
Potential for New All-Time High
Bitcoin’s next major target is $71,500, which might open doors for new ATHs; this was also highlighted by popular cryptanalyst Rekt Capital, who stated that bitcoin price had been clustering between $65k and $71.5k with potential visits to the range high at $71.5K.
Future price action will be highly influenced by inflows into U.S.-based spot Bitcoin ETF platforms, which attracted a total of $795 million net inflows last week. This marked four straight weeks of net positive inflows, suggesting that demand has increased.
Moreover, Donald Trump’s recent pro-crypto rally added fuel to an already bullish mood. If Trump gets re-elected he promised to incorporate Bitcoin into US strategic reserves, something that analysts argue would push BTC prices significantly higher even though others anticipate prices reaching above $800 thousand if he wins.
By August, however, the volatile price action observed on Bitcoin within an ascending wedge pattern suggests a potential recovery back towards $74k. However, if a breakdown occurs below the lower trend-line of the wedge, it may result in corrective movements back down towards levels between $60-66k; amid soaring prices, these asset movements among year-old BTC holders underscore continuous bullish sentiment and chances for substantial near-term gains.
