As ETFs see record volumes, the price of Bitcoin holds more than $62,000
The price of Bitcoin (BTC) rose above $64,000 on February 28, before returning to the $62,000 zone. This rise in BTC prices was accompanied by record volumes in spot Bitcoin ETFs and crypto liquidity.
As of 3:35 PM UTC, Pioneer cryptocurrency was trading at $62,669, up 5% in the last 24 hours.
The latest rally saw a 93% increase in BTC's daily trading volume to $90.2 billion. According to the CoinMarketCap ranking, Bitcoin's market capitalization has risen to $1.23 billion, taking its top spot as the most valuable cryptocurrency.
The rise in Bitcoin prices is largely due to the increased flow of Bitcoin ETFs into the new space.
US spot Bitcoin ETFs see record daily gains.
Spot Bitcoin ETFs continue to soak in capital, with the fund posting net inflows of $673 million on February 28, sending BTC above $64,000. These figures are higher than the high of $655.2 million set on Jan. 11 when trading began, according to data from Farside Investors.
BlackRock's Spot Bitcoin ETF, IBIT, has put in about $6.12 million of that amount, its highest ever. Fidelity's ETF, which trades under FBTC, came in second with around $245.2 million, while ARK Invest 21Shares' ARKB took third place with $23.8 million. Greyscale's ETF, under the ticker GBTC, was still negative, with inflows totaling $216.4 million on February 28.
Additional data from BitMEX research shows that the nine new Bitcoin ETFs have generated nearly $7.4 billion in net inflows, the highest since their launch.
“Only one or two other ETFs on the planet are taking in cash at the rate of $IBIT. It will hit $10 billion tomorrow. Easily faster than ever in 7 weeks,” Bloomberg ETF analyst Eric Balchunas posted on X. “For context, 10b, It took $GLD over two years to beat VOO over 3 years.
Bitcoin's price volatility causes severe crypto liquidity
Bitcoin's price volatility has led to liquidations of highly leveraged positions in the crypto market. In the year
While the New York trading session started around $62,500, a total of $683 million — $341 million in longs and $341 million in shorts — was rejected in 24 hours.
About $143 million worth of bitcoin shorts were snapped up in 102 million long positions in the last 24 hours.
The largest single liquidation order occurred on OKX for a BTC/USDT SWAP, valued at $9.35 million.
RELATED: Bitcoin price hits $64k as traders hit new all-time high before halving
As more Bitcoin ETFs enter the space and the supply halving event approaches, investors expect the new round of Bitcoin's higher price action to continue.
Bitcoin face “direct no resistance” up
Independent analyst Ali posted a chart on X showing IntoTheBlock's In/Out of the Money Around Price (IOMAP), saying Bitcoin price “will not face any resistance in the future.”
The chart showed a significant support zone between $54,300 and $56,200, with approximately 903,540 addresses having previously purchased approximately 500,000 BTC.
No resistance before #Bitcoin. The main support wall we see is between $54,300 and $56,200 where 903,540 addresses have bought nearly 500,000 $BTC. pic.twitter.com/ZMeVkWyS4A
— Ali (@ali_charts) February 28, 2024
The IOMAP chart shows that roughly 89.75% were in the fund at current prices compared to 9.24% out. This is a relatively small percentage to effectively resist attempts to push prices.
As the weekly chart below shows, the above mentioned support level has already provided a good retracement level for BTC. In the year It was in 2021, when the price first began to swing above this level at $64,500 and later reached an all-time high of $69,000 on November 10 of that year.
The Relative Strength Index (RSI) at 85 and moving averages pointing upwards confirm the dominance of buyers in the market.
On the downside, Ali warned short-term traders that the TD sequence indicator has flashed a sell signal on the four-hour chart. If this is confirmed, it could lead to “$BTC price corrections between 1.50% and 4.20%”, as seen in the past.
A TD sequence lights a sell signal on #Bitcoin's 4-hour chart.
Since February 15, every sell signal from this indicator has been in place, leading to $BTC price corrections between 1.50% and 4.20%. This is a pattern worth noting for traders looking at short-term moves! pic.twitter.com/TQhSG78WF3
— Ali (@ali_charts) February 29, 2024
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
