Bitcoin Traders Expect Prices to Hit $74K Highs as Selling Pressure Eases

In a surprising turn of events, the US Consumer Price Index (CPI) increased by 0.3% in April instead of the anticipated 0.4%, as predicted by economists. This unexpectedly mild inflation figure led to a significant surge for Bitcoin, pushing its price back above $66,000 for the first time since April and recording its largest one-day gain since March.

With this action and the increasing requests from conventional finance, there’s a strong possibility that bitcoin may reach its previous peak of $73,700 set in March.

“According to QCP traders, we anticipate a strong surge in price that may bring us close to the previous highs around $74,000. Notably, significant purchases of Bitcoin call options worth $100,000 to $120,000 for December 2024 have been observed during this upward trend in the spot market.”

Large institutional investors, such as Millennium and Schonfeld, are increasingly showing interest in Bitcoin. They have allocated around 3% and 2% of their Assets Under Management (AUM) respectively, by investing in the Bitcoin spot Exchange-Traded Fund (ETF).

On Wednesday, numerous filings revealed that prominent investment firms including Millennium Management and Elliot Capital had amassed significant amounts of Bitcoin exchange-traded funds (ETFs) within their portfolios, with values in the millions.

Based on my analysis of the current market trends, I’ve noticed that the selling pressure on Bitcoin seems to be subsiding. This observation is supported by both on-chain and exchange data.

As a crypto investor, I’ve noticed that some short-term Bitcoin holders have been selling their coins recently, despite incurring little to no profit. This trend has also impacted traders who have seen their unrealized profits dwindle over the past few months. However, there seems to be a reduction in Bitcoin supply coming from Over-the-Counter (OTC) desks. This suggests that these entities are not supplying as much Bitcoin to sell on the market currently.

As a crypto investor, I’d define myself as a short-term trader if I buy and sell Bitcoin within a timeframe of 155 days or less. This strategy allows me to take advantage of the market’s volatility and price fluctuations in the short term.

As an analyst, I’ve noticed that bitcoin has experienced a sudden surge in value following several weeks of muted price action. Since early March, the cryptocurrency market has been confined within a narrow range, oscillating between $60,000 and $70,000. The halving event in April was anticipated to ignite a bullish trend; however, its impact was mitigated due to a dearth of catalysts that could fuel significant trading activity.

Earlier this week, the readiness for taking on greater risk in investing in speculative assets, such as certain meme stocks and meme coins, started to emerge more prominently following a Reddit post by retail trader Keith Gill. This post ignited significant price increases in these assets.

In early 2021, Gill’s active online presence and unique investment tactics significantly influenced the sudden surge in GameStop’s stock price, leading some analysts to interpret his recent return to social media platform X after a long hiatus as an indicator of potential market instability in the upcoming months.