Just a few hours ago, Bitcoin price displayed a bearish trade setup, with the possibility of falling by more than 12% and reaching levels below $60,000. However, recent price action appears to have squashed the bearish narrative, with the price poised to reach the next barrier at $68,000 during the next bullish wave. While multiple reasons have fueled the bullish breakout above $66,000, the question remains whether the bullish momentum prevails for long or is another fakeout.
It has been a known fact that the US CPI rates and the FOMC meetings have been impacting the markets, specifically the BTC price rally. A similar trend has repeated as the announcement of a softer CPI rate of 0.3% versus the expected 0.4% in March seems to have a notable impact on the BTC price rally. Each time, the impact has remained only for a short time, as the bears soon jump in and begin to extract the profits.
Will the same scenario repeat? Will the BTC price plunge back below $62,000?
Ever since the approval of the Spot Bitcoin ETF, volumes have been soaring significantly. This has also elevated the price from $40,000 and marked a new ATH close to $74,000, which attracted bearish forces. Besides, the spot Bitcoin ETF volume also dropped, which is assumed to have kept the price under a descending trend. In a recent update, these volumes have spiked up as Grayscale and Blackrock have again begun to reaccumulate.
The data from Santiment shows that the Bitcoin ETF volume is picking up a major stream, with the 7 largest ETFs hitting over $5 billion, which is the highest since March 24th. This suggests the institutions have again raised their confidence in crypto and placed huge bets on the token. Therefore, the price is expected to remain elevated for a while but the bulls are facing extreme difficulty in entering the key resistance zone above $66,500. This could raise some bearish concerns over the course of action, as the possibility of a fakeout may not be eliminated.
The Bitcoin price is trading at $66,191 with a jump of over 7% as the market cap surged above $1.3 trillion in a short while. Although the trade remains under bullish influence, bearish clouds continue to hover over the BTC price rally. As a result, a rise from the bearish influence may not be validated until the price closes the weekly trade on a positive note.