Bitcoin Price Surges Above $50,000 on ETF Demand
Bitcoin price reached a two-year high of $50,000 before dropping to $48,200 due to resistance at $50,400 and the release of higher-than-expected US CPI data. The surge in price was driven by the launch of spot BTC ETFs, which attracted significant investor interest. The total net inflow volume in the new spot ETF sector reached $3.26 billion, with BlackRock’s IBIT ETF leading in daily net inflow. This influx of institutional money into Bitcoin is a sign of its maturation as a global asset.
Impact of BTC ETFs on Bitcoin Price
The approval of spot Bitcoin ETFs has the potential for significant long-term impact. Institutional investors are now turning to this new investment vehicle, indicating growing interest and maturity in the market. The net inflow volume has been consistently high, with over $500 million flowing into the markets through spot Bitcoin ETFs each day. This trend signals institutional interest and suggests that the market will continue to accelerate.
Predicting Bitcoin Price Trajectory
The surge above $50,000 was influenced by the increase in spot ETF volume. However, the resistance at $50,400 is an important level to watch as it needs to be successfully tested for Bitcoin to reach $52,000. The Relative Strength Index (RSI) supports a bullish technical structure on the weekly chart. Key milestones to monitor include the levels at $50,000 and $50,400 as well as the seller congestion zone at $52,000. Based on fundamental analysis, Bitcoin has a clear path towards $55,150 before facing potential retracement.
Key Support Areas and Potential Retracement
Bitcoin has strong support between $42,403 and $43,953, where 3 million addresses bought 1.44 million BTC. It is unlikely that Bitcoin will drop below this range in the event of a significant pullback.
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