Bitcoin Price Surges Amid Analyst Predictions of $84K Rally

Bitcoin's price has been on an upward trend in May, with analysts predicting a potential rally towards $84,000. The cryptocurrency broke key resistance levels and rose nearly 2% at the beginning of the month.

The BTC liquidity map shows heavy activity around key price levels, with the most important level being $80,000. This area has built up a large amount of short positions, making it a strong resistance zone.

According to analyst Ali Martinez, if Bitcoin manages to break above $80,000, it could trigger a short squeeze, pushing the price even higher. Another analyst, Michael van de Poppe, also shared a bullish view on Bitcoin, suggesting that fresh ETF inflows at the beginning of the month could help lift the price.

The return of institutional demand is another major factor supporting Bitcoin's price. U.S. spot Bitcoin ETF recorded a strong net inflow of $629.9 million on May 1, reversing a three-day outflow trend. Large players like BlackRock, Fidelity Investments, and Invesco led the inflows.