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Bitcoin has experienced a slight dip to trade at $62,779.73 after a 1.50% decrease in the last 24 hours. Despite this minor downturn, the broader market sentiment around Bitcoin remains bullish with the market cap sitting at $1.24 trillion and the 24-hour trading volume surging by 42%, reaching $28.1 billion as of writing.
BlackRock's Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust ETF (IBIT) recorded its largest daily net inflow in 35 days. On August 26, IBIT saw an inflow of $224.1 million, marking its most significant inflow since July 22, when it recorded $526.7 million. This inflow of capital suggests that investors are capitalizing on Bitcoin's slight dip below $63K following a strong weekly rally.
Bitcoin's price experienced a decline after the weekend, falling from a high of $65K. This pullback came after a strong bullish move that took BTC from $58K to $65K on August 25, marking its highest price since early August. The recent surge in IBIT’s inflows highlights the growing institutional interest in Bitcoin, even as its price fluctuates.
The impact of IBIT’s inflows extends beyond the fund itself. On the same day, all 11 U.S. spot Bitcoin ETFs recorded a combined net inflow of $202.6 million. However, not all ETFs shared in this success. Funds from issuers Bitwise, Fidelity and VanEck together saw net outflows totaling $32.1 million. The Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) were the only other ETFs to record net inflows, with $5.5 million and $5.1 million respectively.
IBIT’s dominant inflows on August 26 follow a strong performance during the week ending August 23, where it led global crypto investment products in net inflows. According to data from CoinShares, these products saw their highest weekly inflows in the past five weeks. Bitcoin investment products in particular, attracted interest, with inflows reaching $543 million. IBIT once again led the pack, capturing $318 million of these inflows.
The recent surge in crypto buys was largely driven by market anticipation that the U.S. Federal Reserve might cut interest rates soon. This expectation gained traction after Federal Reserve Chair Jerome Powell hinted on August 21 that a rate cut could occur as early as September.
Technically, BTC needs to trade and close above the bullish flag pattern on the higher timeframes to confirm a continuation of the bullish trend. The next key target for Bitcoin is the resistance level at around $68K. A breakout and close above this level would likely trigger a massive rally, backing up the bullish momentum.
However, with Bitcoin currently retracing lower, it is expected to find support at the $61K level as analyzed in our previous report, where there is horizontal support and a fair value gap from last week. If this support holds, it could provide the support for the next upward move.
Adding to the bullish outlook, a recent tweet from a prominent analyst pointed to a potential cup and handle formation in Bitcoin’s price chart.
This pattern is often considered a strong bullish indicator, suggesting that Bitcoin is set for a breakout in the coming weeks. Should this consolidation phase resolve to the upside, it could pave the way for altcoins to surge and potentially drive Bitcoin’s price beyond the $100K mark.
