Bitcoin Price Responds to $384M ETF Inflow, $70,000 BTC Incoming?

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.