BTC Nears $67K: Big Players and Positive Inflation Data

Bitcoin Breaks Resistance and Sets Sights on $70K

Bitcoin (BTC) has been on quite a ride this week, thanks to some positive U.S. CPI data suggesting inflation might be cooling off. The surge has been helped by major financial institutions, including Morgan Stanley, revealing significant holdings in US spot Bitcoin ETFs.

Currently, Bitcoin is trading just below $66,000, after peaking at new monthly highs above $66,700 earlier today. Morgan Stanley just revealed they’re holding a hefty $270 million in spot Bitcoin ETFs. Back in February, they hinted at this move, and now it’s official. They’re also planning to start recommending these ETFs to their clients, which could be a game-changer.

Q1 13F filings as of Thursday show that over 500 asset managers now have exposure to spot Bitcoin Exchange Traded Funds. Leading the pack is Millennium Management, with nearly $2 billion in holdings. That’s quite a hefty chunk, representing about 3% of the company’s $64 billion in assets under management (AUM).

Bitcoin enthusiasts are optimistic, believing that the increasing institutional interest in Bitcoin ETFs, coupled with a better economic outlook, will push Bitcoin back above $70,000 soon. Just this Wednesday, following the positive CPI report, spot Bitcoin ETFs saw net inflows of over $300 million. Also Wednesday, Bitcoin price jumped from an open at $61,550 to a close at $66,250, breaking several resistance levels.

Chart Analysis – BTC/USD

After bouncing off the support at $57,000, Bitcoin posted its first higher high since early April. There’s also a higher low in there somewhere, so we could say that an uptrend is forming. And there are more positive signs on the chart: the resistance at $63,600 was broken and so was the 50-day Moving Average, all of this happening after a failed break of the descending channel and a bullish bounce at support ($57,000).

For Bitcoin to continue its upward trajectory, it needs to break above the late April peak at $67,250. Achieving this milestone could pave the way for a push into the upper boundary of the descending channel, at $70,000.

If it gets there, we will witness a very interesting battle and a bounce-or-break scenario that will be crucial for medium-term movement. If the bulls manage to stage a breakout, Bitcoin will be cocked and ready for a new All-Time High. However, the Relative Strength Index may become overbought by then, which would indicate that at least a small pullback will occur before a potential retest of the yearly highs.