The S&P 500 Index (SPX) and Nasdaq Composite broke records after the US Consumer inflation report came in lower than expected, sparking a rally in Bitcoin and pushing its price above $66,000. The further Bitcoin moves away from $60,000, the less likely a breakdown becomes, but this does not guarantee a new uptrend.
Galaxy Digital founder and CEO Mike Novogratz said during the firm’s first-quarter earnings that Bitcoin is likely to consolidate between $55,000 and $75,000 before rising by the end of the current quarter. Bears’ inability to pull Bitcoin below $60,000 seems to have attracted buyers’ interest. CoinShares’ Weekly Crypto Asset Fund Flows report showed an inflow of $130 million into crypto asset investment products last week, marking the first occurrence in five weeks.
The Wisconsin State Investment Board (SWIB) disclosed investments worth approximately $164 million in spot Bitcoin exchange-traded funds. Bloomberg ETF analyst Eric Balchunas said in an X post that more such institutional investments could be expected as they tend to move in herds.
Bitcoin Chart Analysis
Bitcoin rose above the 20-day exponential moving average of $62,765 on May 15, indicating that the bulls are absorbing supply. If buyers maintain momentum and push the price above the 50-day simple moving average of $65,152, it could open the doors for a possible rise to the strong resistance at $73,777. Bears may defend this level with all their might.
If bears want to prevent the upward movement, they will have to defend the 50-day SMA and pull the price down to the support at $59,600. Bulls are likely to defend this level aggressively because if the support breaks, the BTC/USDT pair could drop to the 61.8% Fibonacci retracement level of $54,298.
Ethereum Chart Analysis
Ethereum‘s strong rebound from the $2,850 support on May 15 indicates that bulls are fiercely defending this level. If buyers push the price above the 20-day EMA of $3,026, the ETH/USDT pair could rise to the resistance line of the descending channel. Bears are likely to make a strong defense at the resistance line, but if bulls prevail, the pair could start a rise towards $3,400.
Conversely, if the price falls from the 20-day EMA, it will signal that bears are selling on every minor rally. The pair could then retest the strong support at $2,850. A break below this support could start a downward move towards the support line of the descending channel.
