Bitcoin is poised to embark on a “parabolic run” driven by the increasing inflows into United States spot Bitcoin (BTC) exchange-traded funds (ETFs), as per analysis by crypto experts.
ETFs for spot Bitcoin (BTC) have experienced positive flows for a consecutive 19 days, with almost $1.7 billion entering the market just this week, as per data from Farside Investors. Analysts predict that if this trend continues, Bitcoin’s price will surpass its record high of $73,835 set in March.
Since June 6, over $15.5 billion has flowed into spot Bitcoin ETFs, with these funds holding approximately 5.2% of all BTC in circulation, according to data from HODL15Capital.
Experts suggest that continued inflows into ETFs, among other factors, will lead BTC to break through key resistance levels and enter into price discovery territory.
Independent trader Jelle shared a weekly BTC chart on X, showcasing the ongoing battle with resistance at the $72,000 psychological level. The trader noted that the price is persistently pushing against this barrier, and with substantial ETF demand and neutral funding, it’s only a matter of time before prices surge higher.
“Fidelity not messing around,” remarked Bloomberg senior ETF analyst Eric Balchunas in a post on X on June 5 following a $379 million increase the day before. Balchunas added, “The ‘third wave’ is turning into a tidal wave,” hinting at the potential impact of these inflows on Bitcoin’s price.
The recent surge in flows comes as the demand for digital asset-focused investments picks up, with May witnessing $2 billion in inflows. This is a result of growing investor confidence in these assets and the perception that regulators are becoming more open to them.
Bitcoin’s price must overcome key resistance levels to sustain its upward trend. Pseudonymous trader and analyst Moustache spotted the flagship cryptocurrency’s price on the verge of breaking above a crucial resistance line on the five-day chart. The analyst stated to his 122,400 followers on X that this cross signals the final parabolic run for Bitcoin every four years, with 2012, 2016, and 2020 being past examples.
Echoing similar sentiments, Jelle noted that Bitcoin’s price had finally crossed above its all-time highs on the weekly timeframe after acting as resistance for over 10 weeks. According to Jelle, if the price maintains above this level, it will embark on a parabolic uptrend, akin to historical patterns repeating themselves.
At present, Bitcoin is trading above $71,000, roughly unchanged over the past 24 hours and down 3.6% from its all-time high above $73,835 in March. However, the asset has seen an increase of over 4% for the week and 68% year-to-date.
Please note that this article does not offer investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.