Analysis shows that a combination of rising BTC prices and renewed institutional interest sent Bitcoin trading to a two-week high on June 5.
Trader: BTC Price Reaction: “Not Surprised”
Bitcoin (BTC) hit a local high of $71,286 on Bitstamp after the day’s close, according to data from Cointelegraph Markets Pro and TradingView.
Bulls took gains in the Asian session and Wall Street is now in focus after “strong bidding” at the start of the US trading week.
Analyzing the market, popular trader Skew suggested that US spot Bitcoin exchange-traded funds (ETFs) have helped boost the bullish momentum.
Data from sources including UK-based investment firm Farside showed net inflows of nearly $900 million on June 4. This is the second-largest daily tally in the five-month history.
“It’s not really surprising,” he summarized in his commentary on X’s BTC price action.
“We had spot bids for swaps that were significantly above price through the second half of yesterday’s US session. Typically, consistent swap spot purchases through Coinbase are associated with spot ETFs, leading to inflows.”
Skew added that Binance, now the largest global exchange, could be key to strengthening the upward trend.
“For some time, the edge has been what Binance Spot does in terms of price movements around large inflow dates,” he concluded.
Meanwhile, the Trading Resources Materials indicator highlighted the degree of resistance that currently exists between spot prices and the all-time high of $73,800.
Bidders said they were setting liquidity above $69,000 to boost the BTC price. That in itself is a key level of support.
The X commentary on this day said, “Time will tell whether it will be enough to keep the price above the R/S flip line.”
“Meanwhile, liquidity is stacked above $71.5,000 and very concentrated around $72,000. Some consolidation above $69,000 would be healthy. Any wick below that line will invalidate the R/S flip.”
Bitcoin ETF Receives Approval Globally
Continuing on the ETF theme, trading firm QCP Capital has seen a broader bullish tailwind for Bitcoin thanks to institutional investment from around the world.
Related: Bitcoin could hit new highs as U.S. employment and inflation slow.
“With BlackRock’s BTC Spot ETF becoming the fastest ETF to surpass $20 billion in size, we have more to follow as Thailand’s SEC approves the first BTC Spot ETF and Australia’s first BTC Spot ETF begins trading today. Watching,” he wrote in the update. To Telegram channel subscribers on June 4th
“Unprecedented inflow access to traditional capital from around the world will undoubtedly support BTC prices.”
QCP added that it expects US unemployment data due this weekend to push Bitcoin higher. This is especially true if it shows that restrictive financial policies are having a larger impact than expected.
“Could this be the catalyst for a new all-time high?” It asked.
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.