Bitcoin Rally Above $67.5K Could Set New Records: 10x Research

Bitcoin’s price could potentially surge to unprecedented levels if it manages to break past the critical $67,500 barrier. This level is crucial as it serves as a significant resistance line that might influence Bitcoin’s price movements in the upcoming weeks. This perspective is based on a May 20 report by Markus Thielen, the head of research at 10x Research. Thielen’s report elements the potential for a new high, stating, “A breakthrough above $67,500 could potentially lead to new all-time highs, a scenario that our Bitcoin ETF model predicts.”

This forecast came on the heels of a notable recovery for Bitcoin, which rebounded above the important psychological barrier of $66,000. Over the past week, Bitcoin has seen an appreciation of more than 7.3%, highlighting a strong recovery trend. This price movement is a promising indicator, as Thielen pointed out, suggesting that a successful rise above the $67,500 mark could indeed lead to new all-time highs.

Positive sentiment has also been bolstered by inflows from the United States spot Bitcoin exchange-traded funds (ETFs). These ETFs have seen positive net inflows for two consecutive weeks, with over $200 million in cumulative net inflows. While this is a notable figure, it’s worth mentioning that it’s about half of the previous week’s $413 million, illustrating fluctuating investor confidence.

Prior to the positive inflows observed beginning May 6, net flows for Bitcoin ETFs had been negative for three weeks straight. Institutional interest from ETFs has played a substantial role in Bitcoin’s surge toward new all-time highs. By mid-February, Bitcoin ETFs contributed about 75% to new investments in the cryptocurrency as it broke past the $50,000 threshold.

The $67,500 mark remains a tough resistance for Bitcoin. A breakthrough beyond this price point could potentially trigger the liquidation of nearly $300 million in leveraged short positions across all cryptocurrency exchanges. This possibility underscores the volatile nature of Bitcoin’s price movements and the impact of large-scale trading actions.

In a related development, Tether’s newly-issued USDT might also provide a boost to Bitcoin’s price. According to popular crypto analyst Rekt Capital, Bitcoin’s monthly chart shows that it has turned a major resistance level into support, which could indicate further bullish momentum. This observation was made just as Tether minted $1 billion worth of Tether USD (USDT) on May 17, bringing its annual issuance to $31 billion in stablecoins.

The recent increase in USDT issuance has been cited as a significant factor in Bitcoin’s price rise from $27,000 to $73,000, as reported on May 17 by Lookonchain. Tether’s decision to invest 15% of its net profit in Bitcoin could also contribute to Bitcoin’s rally by increasing demand for the cryptocurrency. Tether acquired 8,888 BTC on March 31, valued at $618 million at the time, making it the seventh-largest Bitcoin holder globally.

As Bitcoin navigates the pivotal $67,500 resistance level, these various elements—rising ETF inflows, strategic investments from Tether, and increasing investor sentiment—are poised to collectively shape its price trajectory. The coming weeks will be critical in determining whether Bitcoin can successfully break through this barrier and set new record highs.