Bitcoin Touches 94-Day High...ETF Funds and Derivative Bets Explode Simultaneously

▲ Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) has reached a 94-day high, fueling expectations of further gains, with ETF fund inflows and expansion of derivative positions emerging as key factors supporting the possibility of breaking through $87,000.

According to crypto media outlet Coingape on May 6 (local time), Bitcoin rose above $81,900 on Tuesday, recording its strongest price level in 94 days. The recent 24-hour increase was 1.42%, and the weekly increase was 6%. The total cryptocurrency market capitalization also reached approximately $2.71 trillion within 24 hours, and Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE), Toncoin (TON), WIF, and Zcash (ZEC) also showed strength alongside Bitcoin's rise.

Market sentiment improved amid easing tensions in the Middle East and expectations of interest rate cuts by the U.S. Federal Reserve. Crypto analyst Ali analyzed that a bullish Moving Average Convergence Divergence (MACD) signal was formed on the weekly chart, and similar past crossovers signaled a long bull run. He stated that Bitcoin had already risen by more than 15% after a bullish crossover appeared on the weekly chart on April 13.

Ali suggested $83,000, where the 200-day moving average is located, as an important observation zone. He believed that if Bitcoin establishes a strong daily close above that price level, it could rise to $89,000, with a potential further move towards the $94,000 range. Coingape reported that Bitcoin's open interest reached a 109-day high, indicating the largest expansion of derivative positions in about three months.

Investors also realized significant profits during the rebound. Coingape reported that Bitcoin investors realized profits close to approximately 14,600 BTC during this trading period, marking the largest profit-taking day since December last year. Long-term holders capitalized on the recovery to secure profits as the price approached resistance levels.

Inflows into U.S. spot Bitcoin ETFs also supported the upward trend. On May 4, net inflows into U.S. spot Bitcoin ETFs exceeded $530 million, and institutional demand continued for three consecutive trading days. During the same period, $61.29 million was newly injected into U.S. spot Ethereum ETFs.

Technically, the $83,000 resistance level was identified as a short-term hurdle. Analysis suggests that if Bitcoin surpasses $84,000, the upward momentum could continue towards the $85,500 target, and stronger buying pressure could test the $87,000 resistance zone. Conversely, if it falls below the ascending channel, the $80,000 support level could be retested in the next correction phase, Coingape reported.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*