Spot Bitcoin ETF buying becomes an avalanche
After the 3rd biggest inflow in terms of US dollar equivalent in BTC on Wednesday, Thursday has now seen the 2nd biggest inflow, as the U.S. Spot Bitcoin ETFs purchased another $896.3M worth of $BTC. As these massive amounts of BTC are being hoovered up out of the market, the $BTC price is coiling up ready to explode higher.
Two days of massive buying
In just these last two days, the U.S. Spot Bitcoin ETFs have purchased more than 24,000 BTC, which equates to $1.72 billion, which in turn is equal to more than 53 times the total daily mined issuance of 450 BTC.
It is also good to bear in mind that this amount of Bitcoin purchasing is just from the 9 U.S. Spot Bitcoin ETFs, with the lions share of this coming from Blackrocks IBIT ETF.
If one takes into consideration that most of the retail interest has not even arrived yet, and that the vast bulk of the institutions are still eyeing Bitcoin from afar; and that most of those that have bought, have only really dipped their toes in, one can start to imagine the size of the avalanche of money that is going to hit this asset over the next few years.
Market eerily quiet
All this said, the crypto market is eerily quiet right now. The $BTC price is flat at just over $72,300, and much of the rest of the cryptocurrency space is in the red. Today is the last day of October, so for this reason, could it be that the market is waiting on the monthly closing price for Bitcoin?
A shallow retracement thus far
Source: TradingView
The short-term price action for $BTC shows that the retracement so far has been extremely shallow. The 0.236 Fibonacci is the first retracement level, and the price has been holding above this. The price could still come back to lower Fibonacci levels which look like very good support, but the constant heavy ETF buying looks to be keeping the price very buoyant. As can be seen in the chart above, the all-time high is only around 2% away.
Explosive price action going into next week?
Source: TradingView
The weekly chart is looking fantastic. Yes, there is currently rejection from the all-time high, but the breakout of the bull flag looks definitive, and it really must be just a matter of time now.
At the bottom of the chart the Relative Strength Indicator (RSI) has its indicator line angled up, after breaking out of a several month downtrend. Things couldnt look much better.
To add to this, Thursday is the last day of October. If the monthly candle closes at around this level, there could be explosive upward price action going into next week.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Read more: https://cryptodaily.co.uk/2024/10/spot-bitcoin-etf-buying-becomes-an-avalanche
Text source: Crypto Daily™
