Bitcoin surged past $61,000 early Tuesday, following the second-largest inflow of the month into U.S. spot exchange-traded funds (ETFs) that hold the cryptocurrency. According to SoSoValue data, net inflows into Bitcoin spot ETFs reached over $61 million, the highest since August 8, when they saw $192 million in inflows. Bitwise’s BITB experienced outflows of $25 million, while BlackRock’s IBIT led with $92 million in inflows.
This prized digital currency broke through the critical $60K barrier today after several days of intense trading. Technically, surpassing $60K is a significant milestone. Currently, Bitcoin is nearing the crucial 200-day moving average, which stands around $63K and is edging closer to $61K. If the price surpasses this level, it could bolster trader confidence and revive hopes for a sustained rally.
The sudden price shift has triggered a wave of liquidations, erasing over $100 million in derivatives holdings within the last 24 hours.
As of Tuesday, the market remains quiet with few catalysts. However, some traders expect increased volatility as Friday approaches, when Federal Reserve Chair Jerome Powell is set to speak at the Jackson Hole conference. Powell is expected to announce a shift toward lower interest rates next month, a move that usually boosts trader optimism as it promotes growth in riskier sectors. Nevertheless, some remain cautious about the decision to withdraw proposed Bitcoin ETF options.
If Bitcoin climbs back to $62K or the 61.8% Fibonacci retracement level, it would create a significant resistance zone in line with the previously broken trendline and the 100-day Exponential Moving Average, currently at around $62,226. In this case, Bitcoin may encounter challenges. A failure to break above $62,066 could result in a decline to $57K, with a potential 19% drop back to the $49.9K daily support level.
However, if Bitcoin closes above $62,066, it could move toward the August 2 high of $65,596, possibly leading to a further 6% increase and a test of the weekly resistance level at $69.6K.
Norway indirectly holds 2,446 BTC through its investments in cryptocurrency stocks, adding to the positive sentiment for Bitcoin and suggesting growing government support for its value.
