.png){kind=logo}
Bitcoin (BTC) has rallied 11% from a low of $56,538 on Friday, July 12 to the current value of $62,757, which was boosted by continued capital inflow into US spot Bitcoin ETFs.
This rally has seen the largest cryptocurrency by market value reclaim key support levels including the vital 200-day exponential moving average (EMA) at $58,251, the $60,000 psychological level, and the $62,300 and $62,500 zone, where the 100-day and the 50-day EMAs appear to converge.
This performance followed a six-day streak of inflows into US-based spot Bitcoin ETFs that began on July 5. These investment products have hit a new record for cumulative total net inflows resting at $15.81 billion at the time of publication, according to SoSoValue data.
The funds have added over $1 billion in assets under management since the beginning of the six-day streak bringing the total assets under management to $51.34 billion. July 12 was the most successful day for net inflows since July 5 with the spot bitcoin ETFs logging $310 million in net inflows.
Meanwhile, the market participants are eagerly waiting for more news on the US spot Ethereum ETFs. Industry experts have noted that after several rounds of back-and-forth with the SEC, the funds appear to be readying for launch this month.
Bitcoin price seeks a return to $72,000
Bitcoin price continues to nurture a V-shapes recovery chart pattern following a 25% drawdown from $72,000.
A V-shaped recovery refers to a type of price drop and recovery that resembles a 'V' shape in charting. It involves a sharp rise back to a peak after a sharp decline.
After dropping drastically from the resistance at $72,000 to set a swing low at $53,499, the price has embarked on a sharp recovery, beginning the formation of a V-shaped recovery chart pattern as shown in the chart below.
At the time of writing, the price was fighting to hold above the support provided by the 50-day and 100-day EMAs around $62,500. A daily candlestick close above this level will open the door for a rise toward the $65,000 psychological level and later to the resistance at $70,000.
Higher than that, the price will return toward the $71,974 range high, completing the V-shaped recovery pattern. Such a move would represent a 15% uptick from the current price.
Supporting this positive outlook was the upward trend of the relative strength index. The price strength at $56 suggested that the bulls had begun dominating the market.
On the downside, failure to hold above the $62,500 level would suggest the inability of the bulls to sustain the higher levels. The price will then drop first toward $60,000 and later go lower to seek solace from the 200-day EMa around the $58,000 demand zone.
