Yesterday, Tangren judged that the market would have an upward momentum and thought there would be a buffer period of two or three days. Unexpectedly, it broke through the 70,000 mark today and sprinted towards a new high of 73,000.
Bitcoin's breakthrough before the halving is of great significance. The key lies in whether NFT can regain its strength this week and whether new funds can continue to flow in. If it has the opportunity to break through the new high of 73,000, it will truly usher in a bull feast for the whole circle to celebrate.
Tang Ren believes that this wave of rise was caused by the linkage of external factors. The number of non-farm payrolls increased by 303,000 in March, far exceeding the expected 214,000. This has caused inflation expectations to rise again and greatly hit the market's expectations for the Fed's interest rate cut.
Obviously, the possibility of a rate cut in June is zero, and July can only be expected slightly. Some experts even predict that it will be in September. Some hawkish Fed officials even shouted out "further rate hikes are not ruled out" to shock the crowd.
But the capital market will not be threatened by such a weak force, so the US stock market continues to rise, oil continues to rise, gold continues to rise, and so does the price of bread. The price of gold has soared to 700 in the past two days, but it still can't stop Chinese aunts from buying.
In fact, not only ordinary people are buying, but also banks all over the world are buying. The release of various data this year shows that the US dollar will depreciate in the future. Therefore, it is not surprising that institutions are selling US bonds in large quantities and choosing safe-haven assets such as gold and bitcoin.
Last week, ETF products had a total net inflow of 7,376 coins, with a cumulative net increase of about 222,800 coins. The inflow rate is slowing down, but we also see that the outflow of Grayscale GBTC is also slowing down significantly. Analyst EMC Labs said: The large-scale sell-off of Bitcoin is coming to an end, and the first wave of large-scale selling in the bull market will boost the price increase in the next stage.
Currently, the trading of Bitcoin spot ETF is mainly concentrated in the United States, but some of it is also conducted overseas. One piece of good news is that Bitcoin spot ETF has become a political issue in South Korea.
A South Korean political party promised during the campaign that if they won the election, they would open up access to the U.S. bitcoin spot ETF. If this could be achieved, it would bring huge traffic and funds to the market.
After all, South Korea's cryptocurrency market is huge. Recent reports show that about 6 million South Koreans participated in the crypto market in the first half of 2023, accounting for 10% of South Korea's total population.
Recent on-chain data shows that approximately 1.87 million Bitcoins, accounting for 9.5% of the total supply, were purchased in the price range above $60,000. Nearly 10% of Bitcoins were traded at this price, which shows that Bitcoin’s foundation is more solid and is expected to continue to play a supporting role in the future.
From the URPD on-chain indicators, we can see that since Bitcoin has recently stayed in this range, a large number of short-term holders between $65,500 and $69,000 have purchased Bitcoin here, which will form some strong support for the coin price.
After two consecutive weeks of sideways trading, the bitcoin price once again hit a new high of 73,000. For those friends who have read Tangren's articles and have taken positions near 62,000, if you are a short-term player, you can actually sell some positions in batches. If you are looking for long-term value now, you just need to sit tight.
In terms of the general direction, 73,000 is a significant pressure point. A breakthrough upward requires a very large amount of energy. If it breaks through, the prospects are unlimited. If it fails to break through, it will be another round of shock consolidation. Whether it can break out of the cocoon and become a butterfly, Tangren believes that it is still just a matter of time. When the breakthrough day comes, a cloud-piercing arrow will come and thousands of troops will come to meet.
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