Bitcoin ($BTC) hits $77,000 as record inflows recorded by U.S. Spot Bitcoin ETFs

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As a seasoned crypto investor with a decade-long journey under my belt, I can confidently say that these are exciting times we’re living in. The massive ETF buying forces behind Bitcoin ($BTC) are undeniably propelling us towards uncharted territories. With the recent $1.36 billion net inflow, it’s hard not to feel the bullish momentum.

On Thursday, Bitcoin ($BTC) momentarily spiked to $77,000 due to a significant surge in investments into U.S. Spot Bitcoin ETFs. This daily investment inflow marked the largest since these funds started operating on 11th January this year. Among the 17,990 BTC purchased by these funds, Blackrock’s IBIT accounted for approximately 82% with a purchase of around 14,630 BTC.

Huge ETF buying forces $BTC higher

A significant surge in purchases of U.S. Spot Bitcoin ETFs is occurring, driving up the price of Bitcoin even more. The net inflow on Thursday amounted to 17,990 BTC, equivalent to approximately $1.36 billion, far exceeding the previous record set in March at $1.04 billion.

To give an idea of the size of this one-day purchase, the total daily issuance of Bitcoin is 450 BTC. Therefore, the total buying by the ETF funds on Thursday was nearly 40 times the total daily mined amount.

Michael Saylor, chairman and founder of Microstrategy, has announced plans to borrow money to acquire an additional 200,000 Bitcoins over the next five years. Meanwhile, the incoming U.S. government is considering legislation that could see them purchasing vast quantities of Bitcoin for a Strategic Bitcoin Reserve.

It’s quite likely that we’re only seeing the beginning of things, since it seems plausible that other nations might also adopt similar strategies. This could lead to intense competition for a unique financial asset unlike any other, which might result in a frenzy of activity.

$BTC bulls tiring in the short term time frames?

For the near future, the price of Bitcoin has surged beyond an upward trendline, a move that strongly suggests a bullish trend. This surge was likely boosted by Thursday’s Spot Bitcoin ETF purchases. If Friday sees significant inflows, Bitcoin could strengthen its defense at the top of the channel and the $76,000 flat resistance level.

The Fibonacci sequence on the graph is only accurate if $77,000 indeed marks the peak for this upward trend. If that happens, potential pullback levels could be at $74,600, $73,000, $71,900, and $70,700. The most significant pullback level, or the point where the price might drop the most according to Fibonacci ratios, would be $69,000 – this is the deepest 0.786 Fibonacci level and the highest point of the 2021 bull market.

In simpler terms, the 4-hour Stochastic RSI is decreasing, whereas the 8-hour and 12-hour are still quite high. The 1-day Stochastic RSI is getting closer to its peak. This often suggests that the bulls might be running out of steam, implying a potential pullback may occur soon.

$69,000 is support for next stage of the bull market

The two-week graph illustrates the growing significance of the previous bull market peak at $69,000. Over the past eight months, multiple attempts to breach this resistance level demonstrated its immense strength, like trying to crack a hard nut. Finally, it has been broken, and if the current two-week candle closes above it, we can expect further upward momentum.

Over the coming days, you might encounter some market turbulence due to short-term Stochastic RSI indicators dipping. However, when we look at the long-term perspective – weekly, fortnightly, and monthly indicators pointing upwards – it’s reasonable to anticipate that Bitcoin’s price rise could persist until the end of this year, and potentially extend into 2025 as well.

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2024-11-08 14:01