Bitcoin Bullish Patterns Surge as ETF Inflows Ignite Market Momentum
Bitcoin Technical Analysis: Patterns Indicate Potential Surge Ahead
Bitcoin’s Current Market Position
Bitcoin (BTC) has encountered a significant resistance point at $107,000, remaining there for the last three days. After hitting a low earlier this week, it has experienced a nearly 10% increase.
Drivers Behind the Recent Price Surge
The recent rally in Bitcoin’s price can be attributed to substantial inflows into U.S. spot Bitcoin ETFs, which have attracted $2.2 billion this week alone. This marks the third consecutive week of positive net additions. According to SoSoValue data, this figure represents a notable rise from the $1.02 billion that Wall Street investors gathered last week.
In total, these ETFs have seen net inflows of $4.5 billion this month, a decrease from $5.2 billion in May and $2.9 billion in April. Cumulatively, they have amassed $48.87 billion, suggesting that the total could surpass the $50 billion mark by July.
With the supply of Bitcoin on exchanges at its lowest level since 2017, the market momentum appears to favor bullish trends, setting the stage for a potential breakout above the previous peak of $111,900.
Analyzing Bitcoin’s Chart Patterns
Leading the ETF Charge: BlackRock and Fidelity
BlackRock’s IBIT ETF has been a significant player, accumulating over $52 billion in assets, bringing its total to $74.5 billion, making it one of the largest ETFs in the United States. Meanwhile, Fidelity’s FBTC has attracted $12 billion in inflows, raising its total assets to $21.5 billion.
Declining Supply and Rising Demand
The increasing demand for Bitcoin coincides with a continuous decline in its supply on exchanges. Data from Santiment indicates that only 1.21 million coins are currently available on exchanges, the lowest since December 2017.
Technical Indicators Favoring Bulls
Recent analysis of Bitcoin’s daily chart reveals a rebound from a low of $98,253 to $107,400. The cryptocurrency remains above both the 50-day and 100-day Exponential Moving Averages, signaling that bullish sentiment is prevailing.
Bitcoin has formed a bullish flag pattern, a highly favorable indicator in technical analysis. This pattern consists of a vertical rise followed by a descending channel, which is part of the flag structure.
Additionally, a cup-and-handle pattern has emerged, characterized by a rounded bottom and a descending channel, which is also part of the bullish flag.
Given these technical indicators, it is likely that Bitcoin will rebound and potentially reach its all-time high of $111,900. A breakthrough above this level could pave the way for further gains, possibly targeting the psychological milestone of $115,000.
