Bitcoin’s recent price increase has placed it above the psychological level of $70,000. However, crypto analyst Willy Woo believes that if Bitcoin can break above the key resistance level at $72,000, the coin could experience even greater gains. This level has been tested but not yet broken in the past few weeks. Woo suggests that if Bitcoin can close above $72,000, it may trigger a short squeeze, leading to liquidations of short positions and driving prices even higher. Based on Woo’s analysis, about $1.5 billion worth of short positions could be liquidated, potentially pushing Bitcoin to reach new all-time highs, possibly around $75,000.
Adding to the bullish sentiment, there has been a surge in institutional inflows into spot Bitcoin exchange-traded funds (ETFs), with several major issuers purchasing significant amounts of BTC. Fidelity acquired $378.7 million worth of BTC, BlackRock bought $274.4 million, Bitwise added $61 million, and Grayscale saw inflows of $28.2 million for its clients. This increase in institutional demand has pushed Bitcoin’s price above $71,500, with prices remaining above $70,000, confirming the previous upward spike.
The approval of Thailand’s first spot Bitcoin ETF by the Thai Securities and Exchange Commission also indicates the growing demand for these investment products. However, the product will only be accessible to wealthy and institutional investors. This approval follows a similar launch of a BTC ETF in Australia.
In summary, if Bitcoin can break above the resistance level at $72,000 and trigger a short squeeze, it has the potential to reach new all-time highs around $75,000. The surge in institutional inflows into spot BTC ETFs further supports this bullish scenario.