Investors Eyeing Potential $60,000 Bitcoin Breakout Amid US BTC-Spot ETF Inflows and Hopes for Fed Rate Cuts
The cryptocurrency market experienced a positive upswing as Bitcoin (BTC) increased by 1.20% on Saturday, August 17, following a 2.31% rise the day prior, closing at $59,623. The total cryptocurrency market cap also saw a 1.13% increase, totaling $2.051 trillion.
In the week ending August 16, the US BTC-spot ETF market reported total net inflows of $32.4 million, breaking a two-week streak of outflows. This marked a significant turnaround from the total net outflows of $81.4 million reported on Wednesday, August 14, when concerns arose over a large BTC transfer to a Coinbase (COIN) wallet by the US government, sparking worries about potential oversupply and its impact on BTC supply and demand trends.
Despite fears of oversupply potentially driving BTC toward $55,000, hopes for multiple 2024 Fed rate cuts and a soft US economic landing helped allay these concerns and increase BTC-spot ETF demand.
Looking ahead, the focus will be on key economic indicators in the US and speeches from the Jackson Hole Symposium, with positive results potentially boosting BTC demand and propelling it toward $70,000 in a risk-on environment.
While the market seems to be responding positively, investors are advised to closely monitor the activity of the US government and Mt. Gox, which currently hold significant amounts of BTC for various purposes.
Underlining the significance of iShares Bitcoin ETF’s flow trends, ETF Store President Nate Geraci emphasized the strength of its inflows and underscored the demand for BTC in the market.
From a technical analysis standpoint, BTC currently sits above the 200-day EMA while still below the 50-day EMA, which has sent mixed signals. A breakout above the $60,365 resistance level could potentially support a move toward the 50-day EMA, with further breakthroughs possibly reaching the $64,000 resistance level.
On the other hand, should BTC drop below the 200-day EMA, it could head toward $55,000, and further declines could bring the $52,884 support level into play.
Meanwhile, Ethereum (ETH) remains bearish, sitting below both the 50-day and 200-day EMAs. A potential breakout from the $2,664 resistance level could see a rally toward $2,800, and a return to $2,800 could bring the 50-day EMA and the $3,033 resistance level into play.
Conversely, if ETH breaks below $2,500, it could face further downward pressure toward the $2,403 support level.
With over 20 years of experience in the finance industry, the author of this piece, Bob, has been managing regional teams across Europe and Asia and has focused on analytics across both corporate and financial institutions. Currently, he is covering developments related to the financial markets, including currencies, commodities, alternative asset classes, and global equities.
As investors navigate the volatile cryptocurrency market, it is essential to stay informed about the latest news and analysis to manage exposure to BTC and the broader crypto market. Supply and demand trends, market indicators, and regulatory developments will all play a critical role in shaping the trajectory of cryptocurrency prices in the coming weeks.
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