Crypto analysts are predicting that Bitcoin is on the cusp of a “parabolic run” as a result of the increasing inflows into United States spot Bitcoin (BTC) exchange-traded funds (ETFs).
In the past 19 days, spot Bitcoin (BTC) ETFs have experienced positive flows, with nearly $1.7 billion pouring in just this week, according to data from Farside Investors. Experts believe that if this trend continues, Bitcoin’s price will surpass its record high of $73,835 established in March.
As of June 6, more than $15.5 billion has been invested in spot Bitcoin ETFs, with these funds holding approximately 5.2% of all BTC in circulation, as per data from HODL15Capital.
Analysts suggest that continued inflows into ETFs, among other factors, will enable Bitcoin to break through key resistance levels and enter into price discovery territory.
Independent trader Jelle recently shared a BTC weekly chart, indicating that the price is currently battling resistance at the $72,000 psychological level. Despite this barrier, the trader is confident that with significant ETF demand and neutral funding, it’s just a matter of time before the price climbs higher.
Bloomberg senior ETF analyst Eric Balchunas expressed his enthusiasm in a recent post, stating, “Fidelity not messing around,” following a $379-million upswing in Bitcoin ETFs. He went on to suggest that the influx of funds could have a substantial impact on Bitcoin’s price movement.
The recent surge in ETF flows coincides with a resurgence in demand for digital asset-focused investments, with May recording $2 billion in inflows. This trend reflects growing investor confidence in these assets and a perception that regulators are becoming more accepting of them.
In order to sustain its upward trajectory, Bitcoin’s price needs to overcome key resistance levels. Pseudonymous trader and analyst Moustache identified a crucial resistance line on the five-day chart that, historically, signals the beginning of a final parabolic run for Bitcoin.
Similarly, Jelle noted that BTC’s price recently surpassed its all-time highs on the weekly timeframe after facing resistance for over 10 weeks. If the price continues to hold above this level, Jelle anticipates a parabolic uptrend, mirroring patterns observed in the past.
Currently trading above $71,000, Bitcoin remains relatively stable over the past 24 hours, down 3.6% from its peak in March. However, the asset has seen a 4% increase for the week and a 68% rise year-to-date.
Please note that this article does not provide investment advice or recommendations, and readers are encouraged to conduct their own research before making any financial decisions.