Bitcoin has surged above the $70,000 mark for the first time in six weeks. The rise to $71,401 on May 20 marked a significant recovery from recent lows, reaching a price level last seen on April 9. This jump highlights the importance of buying Bitcoin during dips below $70,000. The funding rate for Bitcoin, a measure of the cost to hold long positions in futures markets, also reached a six-week high of 0.0187%, indicating strong bullish sentiment among traders.

The increasing funding rates, which had stayed below the 0.01% mark for the past month, suggest growing confidence among Bitcoin buyers. A positive funding rate reflects a preference for leverage by traders betting on Bitcoin’s price increase. This rise in confidence was further supported by technical indicators on Bitcoin’s charts. The 4-hour chart recently showed an inverse head and shoulders pattern, a bullish signal that traders use to predict trend reversals. Crypto analyst Moustache noted this pattern and anticipated further upward momentum.

Moreover, Bitcoin's recent price movement appears to mirror previous bull runs. Fractal analysis, which looks for repeating patterns in price charts, suggests that Bitcoin’s current rally resembles its surge from $31,000 to $69,000 in 2021. If these patterns hold true, Bitcoin could see continued growth in the coming weeks. Additionally, the current price action is reminiscent of the 2017 bull run, suggesting that once Bitcoin clears current resistance levels, it could experience smoother gains.

Institutional investment through Bitcoin exchange-traded funds (ETFs) has also contributed to the rally. After three weeks of net negative outflows, Bitcoin ETFs saw two consecutive weeks of positive inflows. In the week leading up to May 20, over $235 million flowed into Bitcoin ETFs, following an inflow of $413 million the previous week. These inflows have been a significant factor in driving Bitcoin's price upward, reflecting strong institutional interest.

In summary, the surge in Bitcoin’s price past $70,000 is supported by rising funding rates, bullish technical patterns, and substantial institutional inflows. The combination of these factors points to a robust market sentiment and the potential for further price increases, making it clear why purchasing Bitcoin during recent dips was a strategic move. As regulatory decisions and market trends continue to evolve, Bitcoin’s trajectory will likely remain a focal point for investors.