Bitcoin is poised to embark on a “parabolic run”, driven by the increasing inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), as per crypto analysts.
Over the past 19 days, spot Bitcoin ETFs have experienced positive flows, with nearly $1.7 billion pouring in this week alone, according to data from Farside Investors. Analysts believe that if this trend persists, Bitcoin’s (BTC) price will surpass its record high of $73,835 set in March.
As of June 6, more than $15.5 billion have entered spot Bitcoin ETFs, holding approximately 5.2% of all circulating BTC, according to data from HODL15Capital. Analysts suggest that among various factors influencing the price, continuous inflows into ETFs will lead BTC to break through key resistance levels and discover new price territories.
Independent trader Jelle shared a BTC weekly chart on X, showcasing the price grappling with resistance at the $72,000 psychological level. The trader noted that the price keeps challenging this barrier, stating that with significant ETF demand and neutral funding, it’s only a matter of time before the price surges higher.
Bloomberg Senior ETF analyst Eric Balchunas expressed enthusiasm in an X post on June 5, following a $379 million increase the day before. Balchunas mentioned, “The ‘third wave’ is turning into a tidal wave,” hinting at the potential impact of the inflows on BTC’s price.
The recent surge in flows coincides with the renewed demand for digital asset-focused investments, with May witnessing $2 billion inflows, reflecting growing investor confidence in these assets and a perception of increased regulatory acceptance.
Bitcoin’s price must overcome crucial resistance levels to maintain its upward momentum. Pseudonymous trader and analyst Moustache noticed the flagship cryptocurrency’s price nearing a key resistance line on the five-day chart. The analyst highlighted that historically, every four years, this cross signals the final parabolic run for Bitcoin, with the next expected in 2024.
Similarly, Jelle observed that the BTC price had breached its all-time highs on the weekly timeframe, which had acted as resistance for over 10 weeks before finally breaking through on June 5. According to Jelle, if the price remains above this level, it will likely enter a parabolic uptrend, demonstrating a case of history repeating itself.
Bitcoin was trading above $71,000, relatively stable over the past 24 hours and down 3.6% from its all-time high above $73,835 in March. However, the asset has gained over 4% for the week and 68% year-to-date.
This article does not offer investment advice. Readers should conduct their own research and analysis before making any investment decisions, as all investments involve risk.