According to analyst Ted Pillows, if Bitcoin’s price remains above $70,000, there’s a “decent chance” of another rally.
- Analysts are divided on whether Bitcoin has hit bottom after the cryptocurrency rallied to nearly $74,000 over the last 24 hours.
- Crypto analyst Caleb Franzen warned that BTC’s price is still below the short-term holder realized price, which is rare during uptrends.
- Analysts attribute the current Bitcoin rally to ETF inflows and short-covering.
Bitcoin’s (BTC) price fell to around $72,500 on Thursday morning, paring gains after nearly touching $74,000, leaving analysts divided on whether the apex cryptocurrency can continue to rally amid U.S.-Iran tensions.
According to crypto analyst Ted Pillows, as long as Bitcoin’s price holds above $70,000, there’s a “decent chance” of another rally. However, analyst Caleb Franzen warned that BTC’s price is still below the short-term holder realized price (STHRP), which is rare during uptrends.
Bitcoin’s price was trading at around $72,500 on Thursday morning, clocking gains of around 1.4% in the last 24 hours. BTC remains more than 40% below its October peak of over $126,000. On Stocktwits, retail sentiment around Bitcoin rose to ‘extremely bullish’ from ‘bullish’ territory over the past day.
What’s Driving Bitcoin’s Rally?
According to XWIN Research Japan, the rebound in Bitcoin’s price following the U.S.-Iran war shock was driven by ETF inflows and short-covering. “In early March, several hundred million dollars entered these funds, directly supporting spot demand,” the firm said in a note on CryptoQuant. “On March 4 alone, inflows surpassed $200 million, highlighting renewed institutional participation.”
XWIN also noted that open interest rose sharply while funding rates turned negative, indicating a short squeeze. “As prices increased, short liquidations triggered waves of short covering that amplified the rally,” it wrote.
Data from SoSoValue showed $225.15 million flowed into spot Bitcoin ETFs on Wednesday. Weekly total inflows are on track to end the week with net gains after a run of consecutive outflows broke last week. Analysts agree that geopolitical uncertainty remains a key factor in Bitcoin’s price, as tensions between the U.S. and Iran continue to play out.
Read also: Dogecoin, Ethereum Outperform Bitcoin After $600 Million Liquidation Wave Hits Crypto Market
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