Bitcoin ETF Inflow Hits $600M, Sparking Hopes For BTC Price Breakout

The robust Bitcoin ETF inflow indicates that the institutions are putting their bets on the asset. Notably, Bitcoin just concluded a week of sideways price action, highlighting directional uncertainty.

However, key observations this past week demonstrated signs of consolidation and sustained demand among the institutional cohort.

Bitcoin ETF flow data during the week revealed that institutions acquired $608 million worth of Bitcoin. ETFs only registered one day of negative flows during the week on Tuesday.

The limited sell pressure from this key category of BTC holders was a clear indication that they were consolidating despite the uncertainty of sideways price action.

Institutional inflows have been critical in keeping BTC price above $100,000. Especially considering that there was a surge in profit-taking in the last few days. Coinglass data revealed a total of $487.19 million in spot outflows between Monday and Friday.

The institutional activity aligned with previous observations, which revealed that whales and institutions were still propping up Bitcoin price. In addition, these findings signaled prospects that BTC could be on the verge of pushing to higher highs.

Bitcoin ETF Inflow Hints At BTC Price Breakout: What Lies Ahead?

The weekly Bitcoin ETF inflow of over $600 million indicates a growing institutional interest towards the flagship crypto. Besides, the recent global shift in the digital assets space, especially BTC, also indicates that the crypto is poised for a breakout soon.

Meanwhile, despite Bitcoin accumulation from whales and institutions have been warding off the sell pressure, analysts expect a volatility resurgence soon. This means BTC price will soon exit the sideways movement, but what happens when price regains volatility?

Key Price Levels To Watch Ahead

The outcome could lead to directional volatility, which may favor either the bulls or the bears. Renowned analyst Ali Martinez noted that the current BTC price has support at the $98,000 price level and resistance near $116,900.

These were not arbitrary figures but rather based on Bitcoin’s MVRV extreme deviation pricing bands.

This means BTC price could still move by roughly 5% to the downside if the market reacts in favor of the bears. Meanwhile, the topside prediction suggested that a 13% rally would be likely in the event of a bullish breakout.

However, the latest soaring Bitcoin ETF inflow indicates that the market interest remains strong on the asset, despite the retail investors booking profits after the recent surge.

Meanwhile, Martinez also predicted that Bitcoin could potentially rally as high as $120,000. However, that would only be likely if the aforementioned support remained unbroken.

The higher bullish expectation would also put BTC price well into uncharted territory. Another market pundit, under the pseudonym Rekt Capital, also noted that BTC price could be headed towards new ATHs based on historic price patterns that have been playing out recently.

These predictions, combined with the robust US Spot Bitcoin ETF inflow, have bolstered market sentiment. However, investors appear to be taking a pause for more clarity on the future trajectory of the flagship crypto.

What Lies Ahead For BTC Price?

The prospects of BTC price potentially rallying as high as $120,000 were rooted in multiple factors. Among them were the improving market conditions observed in the last few weeks.

The end of the tariff wars has been the biggest contributor to improved market sentiment. This was also aided by positive liquidity flows observed with the M2 money supply.

In addition, the institutional interest, as evidenced by the recent Bitcoin ETF inflow data, also paints a bullish picture ahead for the asset.

Bitcoin ETF Inflow & On-Chain Data Hints At Bullish Run Ahead

Simultaneously, Bitcoin continued to flow out of exchanges despite the recent price plateau. Exchange reserves dropped by over 18,000 BTC, which was equivalent to roughly $1.9 billion worth of liquidity that flowed into the cryptocurrency during the last 7 days.

Declining Bitcoin exchange reserves were in line with the observed consolidation during which a significant amount was accumulated by whales and institutions. However, it is also worth noting that both exchange inflows and outflows have been declining and were down to levels last seen in March.

In conclusion, Bitcoin has been showing low interest from the retail segment, but large holders have been quietly accumulating. Such market dynamics have historically been observed before a major price move.

Besides, the continuing Bitcoin ETF inflow and corporations shifting their focus towards the asset have further cemented bets over a potential BTC price breakout ahead.

Analysts predicted that the market could see a surge in FOMO, especially as sentiment continued to rise. However, it is also worth noting that FOMO among retail holders could potentially create an opportunity for exit liquidity among large holders in the short to mid-term.

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