Sahil Mahadik
The second half of July has been notably bullish for the cryptocurrency market as Bitcoin price drove a high momentum rally. BTC recently witnessed ease from the prevailing supply pressure as the German government completed its $3.5 billion selloff and the fallen Mt. Gox exchange successfully repaid 65% of its creditors. However, the renewed demand pressure was uplifted by a significant inflow into BTC-Exchange Traded Funds (ETFs), indicating strong investor confidence.
Strong ETF Inflows and Miner Accumulation Drive Bitcoin Price Recovery
The Bitcoin price in the daily chart shows a strong V-shaped recovery from the support of $53500. The bullish reversal boasted the coin value of 24.86% to trade at $66597, while the market cap jumped to $1.315 Trillion.
The BTC price challenging the Bollinger Band on the upside signals that buyers are dominating the current price movement. The recovery sentiment is likely attributed to strong inflow into the U.S-based spot BTC ETFs
On July 19th, Bitcoin ETFs saw a net inflow of $383.6 million continuing a positive streak for the eleventh consecutive day. According to data from SoSoValue’s asset tracking page, Fidelity’s FBTC (FBTC) experienced the highest inflow of $141.02 million, while BlackRock ETF (IBIT) had a notable single-day inflow of $116.2 million. The total net asset value of Bitcoin spot ETFs is now $60.7 billion.
Increased investment in Bitcoin ETFs generally boosts Bitcoin’s price, as it indicates growing institutional interest and a positive outlook for future performance.
According to crypto analytics firm IntoTheBlock, miners have significantly increased their Bitcoin holdings throughout July. The data reveals that miners have added 4,500 BTC to their reserves, amounting to a value of $300 million. This accumulation suggests a strong bullish sentiment among miners, who typically have a deep understanding of market dynamics.
Throughout July, miners have increased their holdings by 4,500 BTC, amounting to a value of $300 million. pic.twitter.com/SyqZLEJX8D
— IntoTheBlock (@intotheblock) July 19, 2024
Interestingly, the ongoing recovery aligns greatly with the formation of a broadening wedge pattern. The diverging trendlines of the pattern typically indicate market uncertainty but can provide a directional move once the price breaches either boundary.
The BTC price forecast shows a potential 5.3% jump before buyers challenge major resistance of the wedge pattern at $70250.
A positive crossover state between the MACD (orange) and signal (blue) indicates an active recovery trend and a high possibility of overhead resistance breakout.
The post-breakout rally could face fresh supply pressure at psychological levels like $80000 and $100000.
Frequently Asked Questions (FAQs)
Bitcoin Exchange-Traded Funds (ETFs) are investment funds traded on stock exchanges, which hold Bitcoin as their underlying asset.
Miner accumulation refers to the process where Bitcoin miners hold onto their mined Bitcoin instead of selling it on the market.
The Bitcoin price shows high momentum rally backed by increasing volume and strong inflow from BTC ETFs, a potential breakout from wedge pattern will signal a rally to new high.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
