Bitcoin ETF flows send BTC price into ‘parabolic run’, traders say
Spot bitcoin (BTC) is on the verge of entering a “parabolic run” fueled by the addition of exchange-traded funds (ETFs) to the United States, according to crypto analysts.
Spot bitcoin (BTC) ETFs have seen 19 consecutive days of positive inflows, with nearly $1.7 billion coming this week alone, according to Farside Investors data. Analysts say that if this trend continues, the price of Bitcoin will exceed the high of $73,835 set in March.
In the year As of June 6, data from HODL15 Capital indicates that more than $15.5 billion has flowed into Bitcoin ETFs, with the fund accounting for 5.2% of the BTC distribution.
Likewise, analysts say, among other factors affecting its price, continued inflows into ETFs will see BTC breach key resistance levels leading to price breakthroughs.
Independent trader Jelle shared a weekly chart of BTC in a post on X with the price struggling at the psychological level of $72,000.
The price will “continue to push back” towards this barrier, the trader said, adding that it is only a “matter of time” before the price moves higher, “with significant ETF demand and neutral funding.”
“Loyalty doesn't mess around,” Bloomberg senior ETF analyst Eric Balchunas said in a June 5 X post after the previous day's $379-million increase.
“The ‘third wave' is turning into a tidal wave,” Balchunas added, noting the implications this flow could have on BTC's price.
The latest jump in inflows comes as interest in digital asset-focused investments resumes after May saw $2 billion in inflows, fueled by growing investor comfort as investors become more receptive to the assets and regulators.
Bitcoin price needs to clear key resistance levels to continue its upward trend.
Anonymous trader and analyst Mustache has spotted the flagship cryptocurrency's price about to break above a key resistance line on the five-day chart.
“Every 4 years this cross marks the last parabolic run for Bitcoin.
“To be honest, it doesn't erase such signs. A few months of blissful bliss await us.
Sharing similar sentiments, Jelle observed that the price of BTC crossed above the all-time high in the weekly time frame. Note that this level served as resistance for over 10 weeks before the price finally broke above it on June 5th.
According to Jelle, if the price stays above this level, it will start to go into a parabolic progression, just like in the previous “history repeating itself” situation.
Bitcoin recently traded above $71,000, flat in the past 24 hours and down 3.6% from its all-time high of $73,835 on March 14, but the asset is up more than 4% for the week and 68% year-to-date.
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.
