Bitcoin prices rose to a five-week high of $74,157 on Monday morning amid accumulation by institutional investors and whales. Can the bellwether rise above the psychological support level of $75,000 ahead of the Federal Reserve’s interest rate decision expected to be revealed later this week?
summary
- Inflows from institutional investors and whale accumulation pushed Bitcoin prices to a five-week high of $74,157.
- The US Spot Bitcoin ETF has attracted $2.1 billion in inflows over the past three weeks, with large wallets accounting for a higher proportion of total supply.
- The market is currently focused on the $75,000 resistance level ahead of the Federal Reserve’s interest rate decision expected later this week.
According to data from crypto.news, Bitcoin ($BTC) price rose nearly 4% to $74,157 on March 16, pushing its market capitalization to more than $1.48 trillion. Trading at $73,626 at the time of writing, the bellwether stock is currently 17% above this year’s low.
Bitcoin’s price rally today came as institutional investors and whales continued to buy the safe-haven bet amid ongoing geopolitical tensions.
Notably, the US Bitcoin Spot ETF has recorded net inflows for the past three consecutive weeks, totaling $2.1 billion. A sustained inflow trend is increasing retail sentiment towards the token, supporting its rise.
At the same time, Bitcoin’s rise appears to have been supported by whale accumulation. According to Santiment’s on-chain data, wallets store between 10 and 10,000 pieces of data. $BTC has entered the accumulation stage and its share in the total supply has increased to 68.17%.
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Santiment noted this as a “bullish signal” as it suggests Bitcoin is moving into the wallets of long-term holders.
Meanwhile, Michael Saylor’s aggressive purchases from Bitcoin treasury firms such as MicroStrategy and Metaplanet also provided a significant price floor.
In its latest filing, Strategy continues its multibillion-dollar acquisition strategy, while Metaplanet expands its holdings in the Japanese market to reflect this “debt to Bitcoin” model.
Retail investors are also shifting funds away from traditional safe-haven assets such as gold and silver into Bitcoin in preparation for further volatility from the escalating conflict between the United States and Iran.
Military escalation and attacks on Iranian infrastructure, including Kharg Island, have sent oil prices soaring to multi-year highs as Iran threatens to completely block the Strait of Hormuz, the world’s vital oil artery.
For now, the main catalyst for Bitcoin prices will be the Federal Reserve’s decision to cut interest rates, which is scheduled to be announced on Wednesday, March 18th at 2:00 PM ET.
Economists widely expect the U.S. Federal Reserve to keep interest rates stable in a range of 3.50% to 3.75% as inflation remains high due to the oil price shock, and is likely to remain cautious.
Historically, expectations for stable interest rates have held back the rise in risky assets, but Bitcoin’s current momentum and rise as “digital gold” suggests that a break through the psychological resistance at $75,000 could trigger a massive short squeeze toward the $80,000 level.
Bitcoin price analysis
At the time of writing, Bitcoin/$USDT The 1-day chart also appears to be showing a bullish setup suggesting a significant trend reversal is underway.
Bitcoin price rose above the 50-day simple moving average of $71,164, an important psychological and technical level. The last time it exceeded this trend line was in early February. $BTC It rose nearly 33% in less than a month.
$BTC/$USDT 1 day price chart. “>
$BTC/$USDT 1-day price chart — March 16 | Source: crypto.news
The 20-day SMA is about to complete a bullish crossover with the 50-day SMA. This is a classic signal, also known as a golden cross, that typically precedes sustained upward momentum.
At the same time, the Aroon line also had an Aroon down of 0%, while Aroon up was 100%, further increasing the bullish outlook. This is a strong configuration that signals the arrival of a strong uptrend and suggests that buyers are in full control of the current price movement.
For now, the $75,000 zone, which has historically acted as a psychological barrier for traders, will act as a key resistance level that will determine the short-term trajectory of the asset. If the price breaks above this, the bulls could target the next resistance level at $80,665.
Conversely, a break below the $70,000 support level could invalidate the current breakout and begin a period of consolidation.
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Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.
