Bitcoin, the world’s largest cryptocurrency, has been experiencing a period of significant price volatility in recent weeks. However, a recent surge in inflows to Bitcoin exchange-traded funds (ETFs) has led some traders to believe that a recovery may be on the horizon. According to recent data, US-based spot Bitcoin ETFs recorded $240 million in inflows on Thursday, marking the end of a six-day streak of net outflows.
Renewed Inflows to Bitcoin ETFs
The series of outflows began on October 29 and continued through Wednesday, with the largest outflows on Tuesday amounting to $577.74 million. This wave of outflows was followed by a Bitcoin market correction that saw the price of BTC fall below $100,000 for the first time since June. On Tuesday, the BTC/USD pair hit a four-month low of $98,900. However, since then, the price has recovered 3% on Friday.
The largest inflow came from the BlackRock ETF IBIT with $112.4 million. Fidelity’s FBTC followed with $61.6 million, while ARK Invest’s ARKB added $60.4 million. Bitwise’s BITB saw moderate inflows of $5.5 million and $2.48 million, while the rest of the ETFs saw no inflows or outflows. Cumulative net inflows remain robust at $60.5 billion, and the total net assets of all spot Bitcoin ETFs are $135.43 billion, representing 5.42% of Bitcoin’s total market capitalization.
Key Trendline Back in Focus
After falling to $98,000 on Tuesday, Bitcoin quickly regained the psychological $100,000 mark, coinciding with the 50-day exponential moving average (EMA). This suggests that bulls are aggressively defending this level. Note that this trendline has been supporting the price since September 2023, and a loss of this trendline would be damaging for the bulls.
According to YouTuber Lark Davis, “If we close below the 50-week SMA, things could get complicated.” Fellow analyst Rekt Capital said Bitcoin appears to be bottoming around the 50-day EMA and will need to form a “cluster of lower lows” at this level to bottom out.
As reported by Cointelegraph, the MVRV ratio suggested that $98,000 may actually have marked the local bottom for BTC, suggesting that the price may recover due to seller exhaustion. This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making their decision. For more information, visit https://cointelegraph.com/news/bitcoin-etfs-snap-6-day-outflow-streak-key-trendline-back-focus?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
