Bitcoin price today: $71,000
- Bitcoin trades above $71,000 on Tuesday after bouncing from a key technical level on the weekly chart, signaling chances of hitting a new all-time high in the short term.
- US spot Bitcoin ETFs posted $472.6 million in inflows on Monday, extending the gains seen last week.
- The long-to-short ratio jumps to the highest level in October, while Open Interest for BTC reaches a new high of $42.23 billion.
Bitcoin (BTC) extends its gains on Tuesday and trades around $71,000 after bouncing from a key technical level last week. The technical outlook suggests a bullish bias for BTC, projecting a new all-time high at $78,900 in the short term.
This bullish outlook is reinforced by increasing institutional demand through ETFs, which saw over $472 million in inflows on Monday, building on last week’s gains. Additionally, the long-to-short ratio has reached its highest level in October, and Bitcoin’s Open Interest hit a new high of $42.23 billion.
Institutional interest in Bitcoin remains robust
Institutional demand for Bitcoin remains strong, with Coinglass ETF data showing that US spot Exchange Traded Funds (ETFs) saw an inflow of $427.60 million on Monday, marking four consecutive days of inflows. If this trend continues or intensifies, it could further fuel the ongoing Bitcoin price rally.
Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass
CryptoQuant data indicates that BTC may be poised for another bull run, as the percentage of Bitcoin held by US entities – such as exchanges, banks, and funds – has increased again. Historically, this uptick preceded the strong bull run in late 2023, suggesting that BTC could experience a rally in the coming days if history repeats.
Bitcoin US to the rest reserve ration chart. Source: CryptoQuant
On-chain metrics support Bitcoin rally
Looking down at Bitcoin’s on-chain metrics reveals signs of optimism. Coinglass data shows that futures Open Interest (OI) at exchanges hit a new all-time high of $42.23 billion on Tuesday, indicating that new capital is entering the market and driving fresh buying activity.
BTC Futures Open Interest Chart. Source: Coinglass
Moreover, BTC’s long-to-short ratio also stands at 1.18, the highest level in one month. This ratio reflects bullish sentiment in the market, as the figure above one suggests that more traders anticipate the price of Bitcoin to rise.
BTC long-to-short ratio chart. Source: Coinglass
Bitcoin Price Forecast: Eyes for new all-time high
Bitcoin’s weekly chart shows that the biggest crypto asset by market capitalization broke and successfully retested the breakout level of the downward-sloping parallel channel pattern around $67,500 last week. At the start of this week, it gained over 4.5% and trades around $71,000.
The pattern’s technical target (obtained by measuring the distance between the two trendlines and extrapolating it higher) projects a new ATH of $78,955.
The Relative Strength Index (RSI) momentum indicator on the weekly chart trades at 60, above its neutral level of 50 and still far below overbought conditions, suggesting bullish momentum is gaining traction.
BTC/USDT weekly chart
The daily chart also indicates signs of bullish price action. On Friday, Bitcoin price retested and found support around $66,000, rising 4.89% until Monday. As of Tuesday, it continues to extend its gains.
If BTC maintains its upward momentum, it may soon rally to retest its next key barrier of $73,777, the all-time high reached in mid-March. A successful close above this level could pave the way for BTC to target the 141.40% Fibonacci extension level (drawn from July’s high of $70,079 to August’s low of $49,072) at $78,777, roughly aligning with the weekly chart target previously discussed.
The daily charts' RSI reads 69, nearing its overbought level of 70, showing strong bullish momentum. However, if it enters the zone on a closing basis, traders will be advised not to add to their long positions as the chances of a price pullback would increase. Another option is that the rally continues, and the RSI climbs further up into overbought and remains there.
BTC/USDT daily chart
If BTC falls closes below $66,000, it could decline a further 5.8% to retest its next support at $62,055, the 61.8% Fibonacci retracement level (drawn from July’s high of $70,079 to August’s low of $49,072).
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.