Bitcoin is on the verge of entering a “parabolic run” as inflows into US spot Bitcoin exchange-traded funds (ETFs) increase, according to cryptocurrency analysts.
Spot Bitcoin ETFs have seen 19 consecutive days of positive flows, with nearly $1.7 billion in inflows this week alone, according to data from Farside Investors. Analysts say that if this trend continues, the price of Bitcoin (BTC) will surpass the all-time high of $73,835 set in March.
According to data from HODL15Capital, more than $15.5 billion has flowed into spot Bitcoin ETFs as of June 6, with these funds holding about 5.2% of all BTC in circulation.
Therefore, analysts say that continued inflows into ETFs, among other factors affecting prices, will force BTC to breach key resistance levels for price discovery.
Independent trader Jelle shared a weekly chart of BTC fighting against resistance at the psychological $72,000 level in X’s post.
The trader declared that prices continue to push through this barrier, adding that it is only a matter of time before prices rise higher “through massive ETF demand and neutral funding.”
“Fidelity doesn’t play around,” Bloomberg senior ETF analyst Eric Balchunas said in an X Post on June 5, following a $379 million gain the previous day.
“The ‘third wave’ is turning into a tidal wave,” Balchunas said, hinting that BTC price inflows could potentially have an impact.
The latest surge in flows comes as demand for digital asset-focused investments resumes, with $2 billion in inflows in May. This is a result of increased investor comfort with the asset and a perception that regulators are becoming more receptive to the asset.
Bitcoin price needs to clear a key resistance level to maintain its upward trend.
Mustache, a household name trader and analyst, noticed that the price of the flagship cryptocurrency was trying to break above a key resistance level on the 5-day chart.
“Every four years, this intersection marks Bitcoin’s final parabola. “2012-2016-2020-2024,” the analyst declared to his more than 122,400 followers in X’s June 7 post, adding, “The 2024 cross is just around the corner.”
“To be honest, those signals are not going away. “The next few months will be full of fun.”
Sharing similar sentiments, Jelle observed that BTC price surpassed all-time highs during the weekly period. This level served as resistance for more than 10 weeks until the price finally broke above it on June 5th.
According to Jelle, if the price remains above this level, as has been the case in the past when “history repeats itself,” it will embark on a parabolic upward trend.
Bitcoin recently traded above $71,000 and has been little changed over the past 24 hours, down 3.6% from its all-time high of $73,835 reached on March 14. However, assets are up more than 4% for the week and 68% year over year. date.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.