March 27, 2024
Bitcoin's at $51,020 with ETF Inflows, Approaching $50K Support
Bitcoin News

Bitcoin’s at $51,020 with ETF Inflows, Approaching $50K Support

Friday, February 23, 2024: The Bitcoin price stands at $51,020, facing prolonged weakness as consolidation ensues. Institutional investment experiences a temporary slowdown, and TradingView data reveals BTC encountering challenges around the $51,000 level, with the price action constrained.

Bulls found themselves confined within a narrow trading zone for over a week, with growing concerns arising regarding inflows to spot Bitcoin exchange-traded funds (ETFs). Institutional investment witnessed a brief slowdown, as highlighted by the data on February 21, revealing a net outflow of approximately $36 million from these funds.

February 22 brought a resurgence in activity, with net inflows surpassing a quarter of a million dollars, even when factoring in outflows from the Grayscale Bitcoin Trust (GBTC). James Van Straten, a research and data analyst at CryptoSlate, noted the return to normalcy, stating, “Normality resumed with a $251M inflow into the Bitcoin ETFs.”

Looking at the ETF operators’ buying momentum, Thomas Fahrer, CEO of Apollo, a crypto-focused reviews portal, speculated on the potential impact of BlackRock’s iShares Bitcoin ETF (IBIT) on BTC supply dynamics. Fahrer argued that since 98% of all existing Bitcoin already costs over $100,000, BlackRock’s actions could significantly influence BTC’s supply dynamics.

Addressing low-timeframe BTC price analysis, popular trader Skew highlighted that while the uptrend remained intact, crucial support levels were reentering the picture. Specifically, he pointed to the 88-period and 100-period exponential moving averages (EMAs) on the four-hour chart at $50,017 and $49,654, respectively. Additionally, the 18-period EMA on the daily chart at $49,645 became a notable support level.

Skew emphasized that the current price was trading around the range low and the four-hour 55EMA, typically a near-term trend inflection point indicating potential momentum pick-up. He stated, “Buyers & Sellers likely to fight here for control.”

As BTC navigates this period of consolidation and institutional activity, market observers remain watchful, anticipating how developments in ETF inflows and price support levels may influence the cryptocurrency’s trajectory in the near term.

Image by Sketchepedia on Freepik

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