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Bitcoin(CRYPTO: BTC) price staged a strong comeback after spending the past few months inside a narrow range. It jumped to $79,500, its highest level since May 15 this year. This rebound coincided with the crypto market comeback and as ETFs hitting a crucial milestone.
Bitcoin Price Jumps as ETF Inflows Surge
BTC price soared as investors embraced a risk-on sentiment, with the Crypto Fear and Greed Index jumping to 76, its highest level since December 2024. It has emerged from the extreme fear zone of 14 a few months ago.
Bitcoin’s rally has also coincided with strong Bitcoin ETF inflows. These funds, led by BlackRock’s IBIT, added over $307 million on Friday alone, bringing the week’s total inflows to $1.92 billion, the best week this year. As a result, the funds have added over $2.3 billion so far this month, bringing the cumulative inflows to $53.7 billion.
Most Bitcoin ETFs recorded substantial inflows on Friday. IBIT added $293 million, while Fidelity’s FBTC added $30.19 million. Other top ETFs in terms of inflows were from companies like Grayscale, Bitwise, Morgan Stanley, and VanEck.
Bitcoin is benefiting from Scott Bessent’s decision to intervene in the bond market. This intervention happened after the US 30-Year Treasury Yields jumped to the highest level in over two decades. As a result, investors rotated to Bitcoin, an asset that many investors equate to digital gold. Gold itself jumped to $4,602, its highest point since May.
Bitcoin also jumped after a recent meeting between Trump and top executives, in which they advocated for the CLARITY Act. After that, the possibility that the act will be signed into law this year rose to 25% on Polymarket. It has risen from this month’s low of 14%.
BTC Price Forecast: Technical Analysis
Bitcoin remained in a strong consolidation between June and August 19 when it eventually staged a strong comeback. This comeback pushed it to the key resistance level of $79,380. It moved above the crucial resistance level of $66,875, the upper side of the inverted head-and-shoulders pattern.
Bitcoin has also crossed above its 200-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has climbed to 81, a highly overbought level. This raises the risk of a pullback, potentially toward the key support level of $66,875. Alternatively, the coin could consolidate, forming a bullish flag or pennant before resuming its uptrend.
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