Bitcoin (BTC) once again reached a new price discovery ahead of the Wall Street open on March 13 as bulls overpowered sell-side liquidity.
After a brief consolidation around the $72,000 mark, BTC price experienced a sudden dip of $4,000 before quickly rebounding. This pattern repeated from earlier in the week when resistance prevented upward movements. On this particular day, the resistance level was at $73,800.
However, there were no significant obstacles preventing BTC from reaching $80,000, as indicated by the absence of liquidation levels.
Popular trader Jelle summarized the situation, stating that Bitcoin eliminated overleveraged long positions, retested the 2021 cycle high, and bounced back to $72,000. He added that the outlook was positive for further upside continuation.
There has been a notable increase in institutional money inflows, with financial commentator Tedtalksmacro noting that these inflows now surpass anything seen before, including the new spot Bitcoin exchange-traded funds (ETFs) in the United States. He believes that the price of Bitcoin will continue to catch up with these inflows in the coming months.
The ETFs themselves witnessed a record $1 billion of net inflows on March 12, with BlackRock’s iShares Bitcoin Trust leading the way. BitMEX Research highlighted that there was a record 14,706 BTC inflow on that day alone. This amount represents a significant portion of the newly-mined supply in 2024, totaling around 65,500 BTC.
As of March 13, the two largest ETFs from BlackRock and Fidelity Investments held over 330,000 BTC, which is five times more than the amount added by miners.
Please note that this article does not provide investment advice or recommendations. It is important for readers to conduct their own research before making any investment or trading decisions.