Bitcoin Surges 7%, Breaks $71,000 as Spot Buying and ETFs Boost Momentum

Market Rally:
Bitcoin 7% Maxed out and reached $70,000
Although analysts are divided as some consider the market to have topped, most of these signs indicate that we may be in a new bull phase area.
Farside Investors reported $950 million of inflows last week—its highest since March. This was powered by a recent bounce at an established price support level near $60,000.
Economic Factors:

Bitcoin gained 51% YTD: Bitcoin was up a modest (2%) to $6.9K over the last week, but still one of few assets in positive territory since Jan.1 trading — unlike double-digit losses for stocks and currencies; BTC investors expect U.S. Monetary Expansion by @fundstrat #bitcoin pic.twitter.com/LmMDDYDBHB
U.S. M2 monetary base surpassed $21 trillion in April of 2024, indicating increasing inflation while discounting some apprehension about spending
The Feds now have to walk a tightrope of not triggering inflation but also trying to stop the economy from entering a recession, which could hurt Bitcoin’s attractiveness as a scarce asset.
Exchange Reserves:

Last year, it resulted in exchanges having only 1.643 BTC on reserve, which is significantly lower than today (May 19), when a total of 1,918MN BTC is on reserve—the numbers have now reached levels seen seven years ago.
This, coupled with the recent halving event reducing incoming new supply, only further strengthens that bullish case.

Technical Analysis:​

A positive RSI and trade just below $70,000 suggest an upward breakout to the 20-day EMA ($64,371) is likely.
On the other hand, if BTC overcomes $68,000 resistance (for a more optimistic prediction), that would drive it to as high as $73,777 but might spark bears.
A move lower from here could extend losses to $59,600 and the Minuette degree wave ((iii)) to $56,552.