- The recent performance of Bitcoin (BTC) points to an optimistic sentiment in the market.
- BTC saw a significant weekly inflow of $346M, the largest in a nine-week streak, pushing the year-to-date total beyond $1.5B.
In the midst of increased regulatory scrutiny within the cryptocurrency sector, Bitcoin (BTC) has displayed a spring, maintaining a consolidation level between $36,000 and $37,000. Recent market data reveals that Bitcoin reached a new yearly high of $38,307 on Friday, signaling its steadfastness in the face of ongoing challenges.
CoinShares’ latest report highlights Bitcoin’s strength, countering concerns that the regulatory issues surrounding Binance might trigger a sell-off. Contrary to expectations, the report shows a significant inflow of capital into digital asset investment products, with a weekly inflow of $346 million. This marks the largest weekly inflow in nine consecutive weeks, reflecting growing confidence in the market.
The recent surge in inflows reached $45.3 billion in total assets under management (AuM), the highest point in over a year and a half. CoinShares’ Head of Research, James Butterfill, attributes the recent surge in inflows to the anticipation of a spot-based ETF launch in the US, stating that this is “the most significant since the bull market of late 2021.”
Bitcoin (BTC) Moves Towards $47500 Range
Bitcoin is displaying the Wyckoff Event and Phases in its price movements, involving six key stages: preliminary support, selling climax, automatic rally, secondary test, a misleading spring, and a bullish sign of strength. This pattern analysis suggests a potential upward trend for the cryptocurrency.
Bitcoin has completed the first five stages with a selling climax at $19,100 and is now in the sixth phase, signaling a potential shift toward a distribution phase. Also, Bitcoin’s price remains above $35,000.
The ongoing trend suggests a potential breach of $38,000 for BTC, relying on establishing 2021’s highs as a support level. That validates the current phase as a false breakout and strengthens the case for the accumulation range.
Bitcoin (BTC) Price Chart (Source: TradingView)
In the upcoming period, Bitcoin aims to surpass the crucial $40,000 level, the significant rallies in January 2021, and retested in mid-May 2021, which leads to an all-time high of $68,789 in November 2021.
If Bitcoin manages to break resistance levels at $37,748 and $47,500, it could open the door for additional gains, with a potential target of $50,500. Conversely, a reversal in the trend might see Bitcoin’s price retreat to support levels of $35,500 and $31,200, with the possibility of a further decline to $28,486.
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