Bitcoin price could retrace to the support level above $60K before following gold and major stock indexes in further price discovery.
Ahead of the highly anticipated listing of spot Ethereum (ETH) ETFs in the United States, more investors have flocked into the spot Bitcoin ETFs to increase exposure to the cryptocurrency market. According to the latest market data, the United States-based spot Bitcoin ETFs have registered three consecutive weeks of cash inflows.
Led by BlackRock’s iShares Bitcoin Trust (IBIT), the US-based spot Bitcoin ETFs registered a total net cash inflow of about $533 million on Monday. Notably, only VanEck’s HODL registered a net cash outflow on Monday of about $38.7 million.
Consequently, BlackRock’s IBIT surpassed the NASDAQ ETF $QQQ in cash inflows year-to-date.
💥BREAKING💥
BlackRock’s #Bitcoin ETF has surpassed the Nasdaq ETF $QQQ in flows this year
Most successful ETF launch ever! pic.twitter.com/C4zY9Ps5cB
— Quinten | 048.eth (@QuintenFrancois) July 22, 2024
Bitcoin Price on the Rise
Bitcoin price closed last week around $68k, thus up more than 17 percent in the last two weeks. Trading around $66,612 on Tuesday, Bitcoin price is on the cusp of obliterating the losses made in June. However, Bitcoin price must consistently close above $60k in the coming weeks to invalidate possible correction towards $48k.
According to a popular crypto analyst Ali Martinez, Bitcoin price has already broken out in a bullish outlook in the lower time frames. In the daily chart, Bitcoin price against the US dollar has regained the 50 and 200 Moving Averages (MA) as a support level, following the recent drop below $64K.
From a technical standpoint, Bitcoin price could easily pump towards its all-time high (ATH) above $73K in the coming weeks. Additionally, if Bitcoin price consistently closes above the resistance/support range between $68K and $67K in the coming weeks, the flagship coin will be well positioned to reach at least $83K, which coincides with the 1.618 daily Fibonacci Retracement.
Rising On-chain Activity amid Economic Uncertainties
The gradual increase in Bitcoin’s on-chain activity has heavily been favored by the interest over time from institutional investors and retail traders. Despite the recent sales by the German government and the periodic sales by the United States, Bitcoin has demonstrated its potential as a store of value.
With the anticipated approval from US presidential candidate Donald Trump, Bitcoin is expected to attract more investors over time. Notably, rumors about Trump promising to add Bitcoin as a reserve currency if elected have gained significant traction.
According to CryptoQuant, more Bitcoin investors have shown decreased willingness to sell their coins, which could further increase the supply vs demand shock.
Meanwhile, the US Fed is expected to cut interest rates later this year to follow China, EU, and Canada following a notable decline in inflation and to bolster economic growth. The ultimate result will be increased liquidity, which is vital for the crypto bull run.
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