Huge $886 million inflow to US Bitcoin ETFs helps $BTC to brink of breakout

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As a researcher with a background in finance and experience in following the cryptocurrency market, I find the current situation of Bitcoin extremely intriguing. The recent inflow of nearly $1 billion into US Spot Bitcoin ETFs is a significant development that could potentially lead to new highs for Bitcoin’s price.

As a researcher studying the cryptocurrency market, I’ve observed an intriguing development: Over $900 million worth of Bitcoin was transferred from circulating supply into US-listed Spot Bitcoin Exchange-Traded Funds (ETFs) on Tuesday. This is the second time such a large amount has been moved in a single day. With Bitcoin’s current price hovering above $70,000, there’s a strong possibility it could reach new record highs.

Fifteen straight days of positive ETF inflows

This could be it. Bitcoin is back above $70,000, and the stars are aligning in its favour. The $886 million inflow to the Bitcoin ETFs on Tuesday made sure that these ETFs would register a fifteenth straight day of positive net inflows. Over these 15 days the ETFs have drawn $2.3 billion out of the market, helping to make $BTC more scarce than ever.

Bitcoin hedge against bank collapses

With the announcement that 63 additional banks have become insolvent, some investors may be considering buying Bitcoin. This is because Bitcoin experienced significant growth of approximately 48% following the collapses of Silvergate, Signature, and Silicon Valley Banks in 2023. At present, Bitcoin has only increased by around 6%, but if these banks follow suit, this trend could potentially repeat itself.

Bull flag breakout

As an analyst examining the daily chart, I notice that the price has reached the upper limit of a prolonged bullish flag pattern, hovering just below the significant resistance level at $71,000. The repeated attempts to breach this resistance have increased its potential for eventual breakdown and subsequent transformation into support. This could well be the moment when the resistance gives way, leading to an upward trend in price.

The graph illustrates that Bitcoin is just shy of reaching a significant breakthrough, as demonstrated in the weekly chart above. Maintaining the support level of $69,000 (the peak of 2021’s bull market) at the week’s end is essential but not sufficient for confirming this breakthrough. To truly validate the breakout, Bitcoin needs to overcome and sustain above the previous major resistance at $71,300. A decrease in weekly trading volume near the chart’s base could be an indication that a significant price movement is imminent.

Bitcoin is fulfilling its destiny

As a researcher studying economic trends, I can’t help but feel a sense of anticipation as the pivotal moment draws near. The digital currency, Bitcoin, is living up to its potential. Holding traditional currency in the bank means watching your purchasing power dwindle. Governments, in an effort to meet their financial obligations, will resort to debasement, extracting wealth from the very classes that can least afford it. It’s a harsh reality, but one that we must acknowledge. Bitcoin offers an escape from this vicious cycle.

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2024-06-05 16:12