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Huge $886 million inflow to US Bitcoin ETFs helps $BTC to brink of breakout

Published 05/06/2024, 13:22
Huge $886 million inflow to US Bitcoin ETFs helps $BTC to brink of breakout
BTC/USD
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Crypto Daily - Nearly $1 billion in $BTC was taken off the market and thrust into the US Spot Bitcoin ETFs on Tuesday. Only once previously has this daily amount been surpassed. $BTC is currently above $70,000 and potentially looking to break out to new highs.

Fifteen straight days of positive ETF inflows

This could be it. Bitcoin is back above $70,000, and the stars are aligning in its favour. The $886 million inflow to the Bitcoin ETFs on Tuesday made sure that these ETFs would register a fifteenth straight day of positive net inflows. Over these 15 days the ETFs have drawn $2.3 billion out of the market, helping to make $BTC more scarce than ever.

Bitcoin hedge against bank collapses

Also, with the news that 63 more banks are insolvent, investors could be piling into Bitcoin, given that during and after the time when Silvergate, Signature, and Silicon Valley Banks collapsed in 2023, $BTC surged around 48%. So far, and given that the 63 banks have not as yet collapsed, $BTC has put on a relatively modest 6% in comparison.

Bull flag breakout

Looking at the daily chart, the price is right up against the top of its long time bull flag, and is possibly about to turn the resistance at $71,000 into support. In technical analysis, the more a price knocks on a resistance, the greater is the chance that it will eventually break through. This looks as though it might be that chance.

The weekly chart above shows just how close Bitcoin is to that breakout. Holding the support of $69,000 (the top of the 2021 bull market) at the weekly close is a minimum requirement, but breaking and holding above the last big resistance at $71,300 would be what is needed to confirm the breakout. Volume tailing down at the bottom of the chart would suggest that a big move is about to happen.

Bitcoin is fulfilling its destiny

The moment of truth is approaching. Bitcoin is fulfilling its destiny. Currency held in the bank means a massive decrease in purchasing power, as governments seek to pay the debts by extracting wealth from the middle and poorer classes. Debasement is governments’ only recourse, and the worlds’ citizens need to wake up to what is happening. Bitcoin is your way out.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

This content was originally published on Crypto Daily

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