An analyst at X he thinks Bitcoin bulls could be in for a surprise in the coming months after a key indicator printed a buy signal for the first time in nearly a decade. While pointing to a bullish crossover on the 2-month chart’s Golden Moment Indicator, the analyst said the signal is again flashing green in nearly nine years.
Further cementing this outlook, this is brewing, but the Supertrend indicator, which has historically preceded all major Bitcoin uptrends, is also bullish.
Bitcoin on a bullish trajectory?
Although the analyst may be optimistic about the world’s most valuable currency, the asset remains consolidated. Technically, reading the formation on the daily chart, the coin is slowly losing its uptrend momentum. This week, Bitcoin failed to build on last week’s spike to surpass $72,000 in a continuation of the buying trend.
On the daily chart, Bitcoin is trading above the 20-day moving average. However, prices have been moving horizontally below $72,000. Despite this, traders are hopeful.
Whether the bulls return and push the coin to new highs above $74,000 will depend on many other factors.
Inflows into spot BTC ETFs gain momentum
One of the main influencers of price and sentiment continues to be spot Bitcoin exchange-traded funds (ETFs) and their flow trend. Since launch, nine of the ten spot Bitcoin ETFs have accumulated more than 500,000 BTC, or about 2.5% of the total supply.
When Grayscale’s BTC holding is considered, all spot Bitcoin ETF issuers on the U.S control 830,000 BTC. Cumulatively, this number translates to about 4% of the total supply.
It is noteworthy that, following last week’s slowdown, inflows continued throughout this week, further increasing their holdings – a net positive for the price and, more importantly, investor confidence. As of March 28, data from Lookonchain show that 21Shares led the charge, adding 2,924 BTC.
Despite the general lull in Bitcoin prices, the increase in demand for these derivative products indicates growing interest among institutional and retail investors.
It remains to be seen how prices react from April onwards, an important month. In less than four weeks, the network will halve miner rewards from 6.25 BTC to 3.125 BTC, making the coin scarce. If the current level of demand remains, BTC prices will likely increase as market forces automatically adjust prices.
DALLE Featured Image, Chart from TradingView
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