Bulls Eye All-Time Highs as Bitcoin Regains Momentum

As Bitcoin eyes all-time highs, bulls are gaining momentum once again. The cryptocurrency's surge towards previous highs signals a potential upward move, with the market closely watching if Bitcoin regains its strength to reach new heights. Analysts are closely monitoring the CME gap, suggesting a positive outlook for Bitcoin's future trajectory.

Will Bulls Charge Higher as Bitcoin Approaches All-Time Highs?

Bitcoin (BTC) is poised to end March within striking distance of its previous all-time highs. After a tumultuous week marked by sharp declines, the cryptocurrency is exhibiting renewed vigor. Can bulls regain momentum and drive prices to new heights?

CME Gap Points to Upside Potential

Over the weekend, Bitcoin bulls notched a significant victory. BTC/USD closed the week just shy of $67,200, erasing the majority of recent losses. Analyst Mark Cullen has identified a gap in CME futures that could indicate a further upside move.

However, traders remain cautious. Technical indicators, such as the Relative Strength Index (RSI), suggest that Bitcoin may be overbought. A close above $69,100 would be necessary for bulls to regain the upper hand.

ETF Hopes Resurface

The performance of spot Bitcoin exchange-traded funds (ETFs) in the United States has been closely watched. After experiencing five consecutive days of net negative flows, commentators hope for a return to positive inflows.

Quinn Thompson, head of capital markets at Maple Finance, believes that new buyers are entering the market despite outflows from Grayscale Bitcoin Trust (GBTC). Thomas Fahrer, CEO of Apollo, has linked the recent price resilience to cooling GBTC outflows.

PCE Index and US Spending Package

This week, the Personal Consumption Expenditures (PCE) Index will take center stage in US macro data releases. The PCE is the Federal Reserve's preferred inflation measure, and it follows last week's decision to maintain interest rates.

Fed Chair Jerome Powell will speak again this week, potentially reinforcing expectations of rate cuts later in the year. Meanwhile, a $1.2 trillion US spending package could provide a tailwind for risk assets, including Bitcoin.

Mining Difficulty Maintains Highs

Despite recent price volatility, Bitcoin network fundamentals remain strong. Mining difficulty is expected to hold steady at its automated readjustment this week, hovering near all-time highs. Hash rate has also reached record levels.

Investor Mike Alfred predicts a major correction in global hashrate post-halving, as miners adjust to the reduced subsidy. However, he anticipates super profits for miners with new equipment.

Mainstream Interest Wanes

While crypto market sentiment remains greedy, mainstream interest in Bitcoin appears to be fading. Google Trends data shows that search intensity for "Bitcoin" has declined after a modest spike during the recent price rally.

The Crypto Fear & Greed Index lingers just below the "extreme greed" zone, suggesting that market participants are still bullish but wary of excessive exuberance.

Bitcoin vs. Traditional Markets

Statistician Willy Woo draws a sharp distinction between Bitcoin and traditional financial markets. In bear markets, TradFi experiences steep declines and panic, while in Bitcoin bull markets, FOMO drives prices higher.

Despite the recent pullback, Woo believes that the power of the Bitcoin bull market should not be underestimated.