Bitcoin is about to enter a “parabolic trajectory,” fueled by increasing inflows into Bitcoin funds.
Bitcoin is poised to enter a “parabolic trajectory,” fueled by increasing flows into Bitcoin exchange-traded funds (ETFs) in the United States, according to cryptocurrency analysts.
Spot Bitcoin ETFs have seen positive inflows for 19 consecutive days, with nearly $1.7 billion entering this week alone, according to data from Farside Investors. Analysts say that if this trend continues, the price of Bitcoin (BTC) will surpass its all-time high of $73,835 set in March.
As of June 6, more than $15.5 billion had been invested in bitcoin spot ETFs, with the funds holding approximately 5.2% of all bitcoin in circulation, according to data from HODL15Capital.
As such, analysts say that, among other factors influencing price, continued flows into ETFs will see Bitcoin break through key resistance levels during price discovery.
Independent trader Jelle shared the weekly BTC chart in an article on X with price resistance from the psychological level of $72,000.
The price “continues to retreat” towards this barrier, the trader said, adding that “with the huge demand for ETFs and neutral funds, it is only a matter of time” before the price increase.
“Fidelity is not kidding,” Eric Balchunas, senior analyst at Bloomberg ETFs, said in an article on X on June 5 after the previous day’s $379 million rally.
“The third wave is turning into a tidal wave,” Balchunas added, referring to the potential repercussions of the inflows on the price of Bitcoin.
The latest increase in flows came as demand for digital asset-focused investments picked up, with flows of $2 billion in May, as investors became more comfortable with the assets and the perception that regulators are increasingly receptive to them.
Bitcoin price must break key resistance levels to maintain uptrend
Pseudonymous trader and analyst Mustache has discovered that the price of the leading cryptocurrency is about to break through the major resistance line on the five-day chart.
“Every four years, this cross marks the last parabolic trajectory of Bitcoin. “2012-2016-2020-2024,” the analyst announced to his more than 122,400 subscribers in a June 7 article on X, adding that “the 2024 crossover is fast approaching.”
“To be honest, signals like this won’t go away. A few fun months can await us.
Sharing similar sentiments, Jelly noted that Bitcoin price surpassed its all-time highs during the weekly time frame. Note that this level served as resistance for more than 10 weeks, before the price finally exceeded this level on June 5.
According to Jelly, the price will begin a parabolic uptrend if it continues above this level, just as has happened in the past in a “history repeating itself” situation.
Bitcoin recently traded above $71,000, roughly flat over the past 24 hours, down 3.6% from its all-time high above $73,835 hit on March 14 , but the asset is up more than 4% for the week and 68% on an annual basis. . date.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
