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Bitcoin price is holding steady above a key demand area, hinting at an imminent rally, fueled by flows into spot Bitcoin ETFs and the market debut of spot Ethereum ETFs.
On Monday, July 22, the 11 US-based spot Bitcoin ETFs logged the highest inflows in the recent past, attracting a net inflow more than $533.6 million, according to data from Farside Investors.
BlackRock’s IBIT, netted in the largest inflow of $526.7 million on Monday, its largest sum of fund intake since March 13. The remaining 10 U.S-listed ETFs attracting a net inflow of just $6.9 million, as shown in the figure below.
Analyst Skew commented on the “high 9 fig inflow” into Blackrock’s IBIT saying that such days are “bullish” as they usually occur around market supply zones.
According to Skew, the market needs consistent spot trading to “ sustain this demand and momentum for higher prices.”
Bitcoin’s value inched down 1.2% in the past 24 hours to trade at $66,626, after breaking above the $68,000 resistance line on Monday.
This momentum followed rumours that pro-crypto Republican US presidential candidate Donald Trump would announce a bigger role for BTC in the financial system at the Nashville Bitcoin conference later this week.
The launch of spot Ethereu ETFs, which has been approved for Tuesday, July 23, is also expected to adds to possible hindwings required to push the Bitcoin price above its 2021 all-time high at $69,000.
BTC price surpassed the psychological resistance at $67,000 on Sunday, and the big crypto appeared to support around it on Monday. At the time of writing, the pioneer cryptocurrency is trading at $66,626, down 1.2% on the day.
The price is sitting on strong support provided by a demand zone around $63,000. This is where the 50-day exponential moving average (EMA) and the 100-day EMA appear to converge. Increased buying from this level is likely to push Bitcoin price higher.
The daily Relative Strength Index (RSI) is moving above its neutral levels of 50 and zero, respectively. Its position at 61 signals robust upward momentum and a strong bullish sentiment in the market.
Key levels to watch on the upside are the psychological levels a $68,000 and $70,000, before the price rises to confront the still resistance provided by $72,000.
On the downside, if the launch of spot Ethereum ETFs turns out to be a sell-the-news event, BTC may drop to produce a daily candlestick close below $66,000, accompanied by a formation of a lower low on the daily timeframe, indicating sustained bearish sentiment.
Such a scenario might precipitate a 7.5% decline in Bitcoin's price, potentially leading to a retest of local low at $53,500.
