Bitcoin (CRYPTO: BTC) surged to a multi-month high of $87,270 on Monday before pulling back below $84,000 as US bond yields climbed. However, this retreat appears temporary: Bitcoin has formed strongly bullish chart patterns, and ETF inflows have surged.
Bitcoin ETF Inflows are Rising as Treasury Buying Continues
BTC price may benefit from the rising ETF inflows. SoSoValue data shows that spot BTC ETFs had over $134 million in assets on Friday, with BlackRock’s IBIT adding $97 million. Fidelity’s FBTC added $49 million, while investors redeemed ETFs worth $11.8 million from Bitwise. The other Bitcoin ETFs did not have inflows.
For the week, spot Bitcoin ETFs added $2.4 billion in inflows, bringing the monthly additions to $2.7 billion. This is the third consecutive month of gains, which has helped them turn positive for the year. The surge has offset the $4.5 billion outflows in June and $2.43 billion in May.
These inflows are a sign that American investors expect Bitcoin to continue rising despite the rising US bond yields.
Bitcoin treasury companies are also accumulating. Michael Saylor’s Strategy (NASDAQ:MSTR) bought 95 Bitcoin last week, bringing its total holdings to 846,000. Strive (NASDAQ:ASSR), which is associated with Vivek Ramaswamy, has also continued buying, bringing its holdings to 26,355.
Another sign of demand is in the futures market, where the open interest has continued rising this month. The daily figure has jumped to over $60 billion, signaling that investors are embracing risk. At the same time, the Fear and Greed Index has remained in the greed zone, a sign that investors have embraced a risk-on sentiment.
Bitcoin Price Boosted by Strong Technicals
BTC price chart | Source: TradingView
Technicals suggest that Bitcoin has a high chance of rising to $100k in the near term. It formed a golden cross pattern on September 11 as the 50-day moving average crossed the 200-day one.
Bitcoin also formed a bullish flag pattern, which is made up of a vertical line and a descending channel. It has now soared above the key resistance level of $82,745, its highest level in May and on September 4. It is about to form a break-and-retest pattern as it nears $82,745.
Therefore, the most likely forecast is where it rebounds, and possibly reaches the crucial resistance level of $100,000, which is about 20% above the current level. Tom Lee believes that Bitcoin may jump even higher, predicting that it may soar to $150,000.
Image: Shutterstock
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