Bitcoin Price Poised for Breakout? Traders Eye Potential ETF Impact

0
88

This post was originally published on cryptonewsfarm.com

Bitcoin Poised for Takeoff? Analyst Point to ETF Inflows and Technical Signals

Bitcoin (BTC) is on the cusp of a major price surge, fueled by a surge of investor interest in spot Bitcoin exchange-traded funds (ETFs), according to crypto analysts.

Spot Bitcoin ETFs have witnessed a record-breaking streak of positive inflows for 19 consecutive days, with nearly $1.7 billion entering the market this week alone, as per data from Farside Investors. Analysts anticipate that if this trend continues, the price of Bitcoin will surpass its previous all-time high of $73,835 set in March.

Data compiled by HODL15Capital reveals that over $15.5 billion has been invested in spot Bitcoin ETFs as of June 6th. These funds now control approximately 5.2% of all circulating BTC. Analysts suggest that sustained inflows into ETFs, combined with other factors, will propel Bitcoin through key resistance levels and into uncharted price territory.

Technical Indicators Point Towards Breakout

Independent trader Jelle shared a Bitcoin weekly chart on X, highlighting the price struggling against resistance around the $72,000 mark. Jelle noted that the price keeps “pushing back into” this barrier. However, with “massive ETF demand, and neutral funding,” the trader predicts it’s only a matter of time before a price increase occurs.

Bloomberg senior ETF analyst Eric Balchunas commented on the significant daily inflow of $379 million on June 5th in an X post, stating, “Fidelity not messing around.” Balchunas further noted the potential impact of these inflows on Bitcoin’s price, describing the “third wave” as transforming into a “tidal wave.”

The recent influx of investment coincides with renewed demand for digital asset-focused investments. May saw $2 billion flow into the market, reflecting growing investor confidence and a perception of increased regulatory acceptance of these assets.

Past Performance Informs Future Predictions

Pseudonymous analyst Moustache identified a key resistance line on the Bitcoin five-day chart that the price appears poised to cross. In a June 7th X post directed to his over 122,400 followers, Moustache noted a historical pattern: “Every 4 years, this cross signals the final parabolic run for Bitcoin. 2012-2016-2020-2024.” He concluded by advising against ignoring such signals, hinting at potentially exciting price movements in the coming months.

Echoing this sentiment, Jelle observed that Bitcoin’s price had broken above its all-time high on the weekly timeframe. It’s important to note that this level acted as resistance for over 10 weeks before the price finally surpassed it on June 5th. Jelle suggests that if the price can maintain this level, it could embark on a parabolic uptrend, mirroring historical patterns.

At the time of writing, Bitcoin is trading slightly above $71,000, demonstrating minimal change over the past 24 hours. While down 3.6% from its all-time high, Bitcoin remains up over 4% for the week and a significant 68% year-to-date.

Source Link
Author: Sb

Comments are closed.