Bitcoin is poised to embark on a “parabolic run” driven by the increasing inflows into United States spot Bitcoin (BTC) exchange-traded funds (ETFs), as per cryptocurrency analysts.
Spot Bitcoin (BTC) ETFs have experienced positive flows for 19 consecutive days, with nearly $1.7 billion entering this week alone, based on data from Farside Investors. Analysts predict that if this trend continues, the price of Bitcoin will surpass its all-time high of $73,835 set in March.
As of June 6, more than $15.5 billion has flowed into spot Bitcoin ETFs, with the funds holding approximately 5.2% of all BTC in circulation, according to data from HODL15Capital.
Analysts suggest that, along with other factors influencing the price, continued inflows into ETFs will lead BTC to break through key resistance levels and into price discovery.
Independent trader Jelle showcased a BTC weekly chart in a post on X, illustrating the price battling resistance from the $72,000 psychological level.
The trader noted that the price consistently challenges this barrier, emphasizing that “with significant ETF demand, and neutral funding,” it is only a matter of time before the price climbs higher.
“Fidelity not messing around,” highlighted Bloomberg senior ETF analyst Eric Balchunas in an X post on June 5 following the $379-million upswing on the previous day.
“The ‘third wave’ is transforming into a tidal wave,” Balchunas added, hinting at the potential impact of the inflows on BTC’s price.
The recent surge in flows coincides with the resurgence of demand for digital asset-focused investments, with May witnessing $2 billion inflows, attributed to growing investor confidence in the assets and the perception of regulators becoming more receptive to them.
Bitcoin price must overcome key resistance levels to maintain its upward momentum
Pseudonymous trader and analyst Moustache observed the price of the leading cryptocurrency nearing a crucial resistance line on the five-day chart.
“Every 4 years, this cross signals the final parabolic run for Bitcoin. 2012-2016-2020-2024,” declared the analyst to his over 122,400 followers in a June 7 post on X, mentioning that the “2024 cross is just around the corner.”
Sharing a similar view, Jelle noticed that BTC’s price had broken above its all-time highs on the weekly timeframe. This level had served as resistance for over 10 weeks before the price eventually surpassed it on June 5.
According to Jelle, if the price maintains above this level, it will embark on a parabolic uptrend, akin to how history has repeated itself in the past.
Bitcoin was trading above $71,000 recently, relatively unchanged in the past 24 hours and 3.6% lower than its all-time high above $73,835 reached on March 14. However, the asset has seen a more than 4% increase for the week and a 68% rise year-to-date.
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