Bitcoin is on the verge of entering a “parabolic run” fueled by increasing inflows into United States spot Bitcoin (BTC) exchange-traded funds (ETFs), according to crypto analysts.
Spot Bitcoin ETFs have witnessed positive flows for 19 straight days, with close to $1.7 billion coming this week alone, according to data from Farside Investors. Analysts say if this trend continues, Bitcoin’s price will surpass its all-time high of $73,835 set in March.
As of June 6, more than $15.5 billion have flowed into spot Bitcoin ETFs with the funds holding around 5.2% of all BTC in circulation, according to data from HODL15Capital.
As such, analysts say, among other factors impacting the price, continued inflows into ETFs will see BTC breach key resistance levels into price discovery.
Independent trader Jelle shared a BTC weekly chart in a post on X with the price fighting resistance from the $72,000 psychological level.
The price “keeps pushing back into” this barrier, declared the trader, adding that “with massive ETF demand, and neutral funding,” it’s only a “matter of time” before the price rises higher.
“Fidelity not messing around,” Bloomberg senior ETF analyst Eric Balchunas said in an X post on June 5 after the previous day’s $379-million upswing.
“The ‘third wave’ is turning into a tidal wave,” Balchunas added, alluding to the potential implication of the inflows on BTC’s price.
The recent jump in flows has come as demand for digital asset-focused investments resumes with May seeing $2 billion inflows, a result of growing investor comfort with the assets and perception that regulators have become more receptive to them.
Bitcoin price needs to clear key resistance levels to sustain uptrend
Pseudonymous trader and analyst Moustache spotted the price of the flagship cryptocurrency about to cross above a key resistance line on the five-day chart.
“Every 4 years, this cross signals the final parabolic run for Bitcoin. 2012-2016-2020-2024,” the analyst declared to his over 122,400 followers in a June 7 post on X, adding that the “2024 cross is just around the corner.”
“Wouldn’t fade such signals to be honest. A few months full of fun could lie ahead.”
Sharing similar sentiments, Jelle observed that BTC’s price had crossed above its all-time highs on the weekly timeframe. Note that this level acted as resistance for over 10 weeks before the price finally broke above it on June 5.
According to Jelle, the price will embark on a parabolic uptrend if it sustains above this level, just like it has in the past in a case of “history repeating” itself.
Bitcoin was recently trading over $71,000, roughly flat over the past 24 hours and 3.6% down from its all-time high above $73,835 reached on March 14, but the asset is up more than 4% for the week and 68% year-to-date.
