Bitcoin (BTC) is down 0.6% to $68,000 this week, despite briefly reaching
$70,743 on May 27. This movement underscores Bitcoin's sideways trading within
the resistance zone of $68,000 to $71,000. Bitcoin attempted to break through
the resistance towards $72,000 on May 21 but fell back to $66,350 before
returning to the resistance zone. This pattern has formed a symmetrical
triangle, indicating a potential strong directional movement this weekend or
next week. The nearest resistance is at $78,000, while support is located at
$60,000, which could be potential targets for the expected movement.
Recent updates from creditors of the failed Mt.Gox crypto exchange suggest
that payouts may be coming soon, as 137,000 BTC worth $9.3 billion was
transferred to an unknown crypto wallet. This is the first transfer of assets
by Mt.Gox since 2018, associated with creditor payouts due by October 31. If
these BTC are sold on the market, it could potentially drive prices down.
On the positive side, there has been significant inflow into crypto funds.
BlackRock's IBIT and Fidelity's FBTC reported net inflows of $575.3 million
last week, with Grayscale's troubled GBTC receiving net inflows of $11.1
million. IBIT leads among spot Bitcoin-ETFs with $19.68 billion as of May 28,
closely followed by Grayscale with $19.65 billion. This highlights the growing
attention and investment in the crypto market.
Former U.S. President and 2024 Republican presidential candidate Donald
Trump has vowed strong support for the crypto industry, stating that the U.S.
should become a leader in the field. This has led to a decrease in Joe Biden's
reelection odds on Polymarket, dropping to 44% from 46%. The Democratic nominee
need to respond to this crypto challenge, potentially resulting in the faster
approval of spot ETH-ETFs, which would further support the crypto market.