Bitcoin is poised to embark on a “parabolic run”, driven by the increasing inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), as per crypto analysts.
In the past 19 days, spot Bitcoin ETFs have experienced positive flows, with nearly $1.7 billion coming in just this week, according to data from Farside Investors. Analysts believe that if this trend continues, the price of Bitcoin (
BTC
) will exceed its all-time high of $73,835 achieved in March.
As of June 6, more than $15.5 billion have poured into spot Bitcoin ETFs, with the funds holding approximately 5.2% of all BTC in circulation, based on data from HODL15Capital.
Analysts suggest that in addition to other factors influencing the price, ongoing inflows into ETFs will push BTC past key resistance levels into a phase of price discovery.
Independent trader Jelle posted a BTC weekly chart on X, illustrating the struggle of the price against resistance at the $72,000 psychological level.
With substantial ETF demand and neutral funding, the trader affirmed that it’s only a matter of time before the price climbs higher.
“Fidelity not messing around,” Bloomberg Senior ETF analyst Eric Balchunas mentioned in a post on X on June 5 following a $379 million surge the day before.
Balchunas added, “The ‘third wave’ is turning into a tidal wave,” hinting at the potential impact of the inflows on BTC’s price.
The recent surge in flows coincides with a renewed interest in digital asset-focused investments, with May witnessing $2 billion in inflows, driven by growing investor confidence in the assets and a perception of increased regulatory acceptance.
Bitcoin price must overcome crucial resistance levels to sustain its upward momentum
Pseudonymous trader and analyst Moustache noted the flagship cryptocurrency’s price on the verge of surpassing a key resistance line on the five-day chart.
“Every 4 years, this cross signals the final parabolic run for Bitcoin. 2012-2016-2020-2024,” stated the analyst to his over 122,400 followers on X on June 7, pointing out that the “2024 cross is just around the corner.”
Sharing a similar outlook, Jelle observed that the BTC price had broken above its all-time highs on the weekly timeframe. This level had acted as resistance for over 10 weeks until the price finally breached it on June 5.
According to Jelle, if the price maintains above this level, it will embark on a parabolic uptrend, as history has shown a pattern of “history repeating” itself.
Bitcoin was trading above $71,000 recently, relatively stable over the past 24 hours and down 3.6% from its all-time high above $73,835 reached on March 14. However, the asset is up more than 4% for the week and 68% year-to-date.
This article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.