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BTC price fell to lows of $41,440 after the approval of the spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) on Jan. 10. However, the $41,0000 level proved to be formidable support as buyers bought more at a discount resulting in the on-going recovery.
According to Bloomberg ETF analyst Eric Balchunas in an X post on Jan. 13, the newly launched ETFs witnessed inflows of $1.4 billion, while the Grayscale Bitcoin Trust (GBTC) saw an outflow of $579 million.
Still, the net inflows in two trading sessions across the ETFs were $819 million. Could the inflows into Bitcoin ETFs fuel the recovery in BTC price?
Bitcoin has been all over the place in the past few days. Its price action has been characterized by high volatility, beginning with a spike to $49,000 on Jan. 11, followed by a swing low to $41,441 on Jan. 12.
The bulls are facing tough resistance, the barrier provided by the 50-day exponential moving average (EMA) at $42,104. Although buyers have managed to flip it into support, they have yet to start a meaningful recovery. This suggests that the bears are maintaining their pressure.
The relative strength index (RSI) is facing up and all the major moving averages are on an upward trajectory. This suggested that the market conditions still favor the upside.
If the price maintains above the 50-day EMA, the BTC/USDT pair could jump to $43,000 and then to $45,000. Buyers will have to propel the price above $48,000 to regain control.
On the downside, the RSI is in negative territory, indicating that the bears have the upper hand. If the price breaks below $41,000, the selling could pick up, and the pair may plummet to $38,934 and then to $34,920 where the 100-day and 200-day EMAs lie respectively.
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