Bitcoin ETFs Experience Significant Inflows, Indicating Possible Price Reversal
Bitcoin ETFs reported a $274.6 million inflow on March 17, breaking a five-week outflow trend. Fidelity’s FBTC led the inflows, followed by ARKB and BlackRock’s IBIT. Despite ongoing price resistance around $83,000, the recent inflow may indicate renewed institutional confidence, with potential bullish movements anticipated in the future.
On March 17, Bitcoin exchange-traded funds (ETFs) recorded an inflow of $274.6 million, indicating a potential reversal in trends after a five-week streak of outflows. This significant inflow marks the highest daily contribution since February 4. Notably, all five Bitcoin funds reported net inflows, with Fidelity’s FBTC leading at $127.3 million, followed by ARKB with $88.5 million and BlackRock’s IBIT accounting for $42.3 million. Grayscale’s Bitcoin Fund added $14.2 million, and Bitwise’s BITB increased by $2.3 million, with no funds facing outflows on that day.
Despite the promising inflows, it is essential to recognize that Bitcoin ETFs have just come out of a prolonged five-week outflow period, totaling nearly $5.4 billion, primarily attributed to macroeconomic doubts sparked by tariff announcements from former President Trump. While such uncertainties reduced the market’s positive outlook, this new inflow might signal a shift toward renewed institutional confidence in Bitcoin and other related assets.
Currently, Bitcoin’s price is stabilizing around the $83,000 mark, trading at $82,883—down slightly by over 1% within the day. The 20-day exponential moving average is situated at $85,559, acting as a dynamic resistance level that Bitcoin struggles to overcome. This inability to surpass the 20-day EMA suggests that bearish forces continue to dominate. Nevertheless, if Bitcoin breaks above the resistance at $85,500, it may aim toward $88,000 to $90,000. Alternatively, falling below the $82,000 support may lead to further declines, targeting the next support level of $80,000.
When observing longer-term trends, there remains a bullish potential reflected by March 17’s inflow of $274.6 million, which could signify increasing institutional confidence following the recent period of outflows. According to trader Coinvo, Bitcoin recently exhibited a breakout from a cup and handle pattern and formed a bullish flag, suggesting a possibility of rallying toward $125,000 in the subsequent months. Thus, the bearish consolidation around the $82,000 to $83,000 range may act as a solid foundation for a future upward movement, provided Bitcoin is able to reclaim significant resistance levels.
In conclusion, Bitcoin ETFs witnessed a substantial inflow of $274.6 million on March 17, marking a significant turnaround after a lengthy outflow period. While Bitcoin’s current price faces resistance, the overall trend remains bullish, indicating potential for future upward movement. The recent inflows could signify renewed confidence among institutional investors, bolstering optimism in the cryptocurrency market.
Original Source: crypto.news
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