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Bitcoin Price Skyrockets Toward $60K Following Record ETF Inflows! Here’s What to Expect

source-logo  blockchainreporter.net 28 February 2024 11:33, UTC

Bitcoin’s price has experienced its most significant monthly increase since 2021, positioning it to surge past the $60K mark and approach its historical peak. The last occasion Bitcoin reached these heights was in November 2021, prior to retreating from its record high of $68,789. This recent upswing follows a series of positive market developments and increased interest from institutional investors, sending to achieve remarkable gains in a short span. Nonetheless, there is growing concern over a potential steep downturn, as short-term investors may begin to cash in on their profits.

Bears Bleed Amid $40 Million Liquidation

In the past 24 hours, there’s been a significant increase in liquidations across the cryptocurrency market, with data from Coinglass indicating that overall liquidations exceeded $250 million. Remarkably, in just the last 4 hours, as the crypto market rallied, over $61 million in short positions were liquidated. During this surge, Bitcoin experienced approximately $40 million in liquidations from those betting against its rise. Furthermore, major altcoins, such as Ethereum, reached their highest values of the year, driven by the momentum of Bitcoin’s climb above $59K.

The surge in Bitcoin’s price occurred just two days following the revelation that Michael Saylor’s MicroStrategy had purchased an extra 3,000 Bitcoin, amounting to $155 million, with an average buying price of $51,813, during the period from February 15 to 25. Holding a grand total of 193,000 Bitcoin, acquired at an overall expenditure of $6.09 billion and an average price of $31,544, MicroStrategy stands as the leading holder of Bitcoin among publicly listed companies worldwide. This has boosted the confidence among BTC holders as institutional investors continue to show interest in Bitcoin.

Additionally, Bitcoin ETFs continue to break daily records, as reported by on-chain firm Santiment. Bitcoin ETFs have soared to new heights, setting new all-time high daily trading volumes consecutively over the past two trading days. This surge is believed to be driven largely by a potent mix of investors’ fear of missing out (FOMO) and strategic profit-taking, as Bitcoin breaks through to new 2-year high market values this week.

🤯📈 Speculated to largely be contributed to investors' combined #FOMO and profit taking surrounding #Bitcoin breaking new 2-year high market values this week, the $BTC #ETF's have skyrocketed to new #AllTimeHigh daily volumes in each of the past 2 trading days, factoring for the… pic.twitter.com/X3R0GJH64p

— Santiment (@santimentfeed) February 28, 2024

The recent hype in the Bitcoin market has led to a remarkable uptick in the trading volumes of the seven largest Bitcoin ETFs: GBTC, IBIT, FBTC, ARKB, BTCO, BITB, and HODL. The figures are staggering and indicative of the growing interest and confidence in Bitcoin as an investment vehicle.

On February 19th, a previous record was set with a trading volume of $4.52 billion. However, this record was quickly surpassed on February 25th, with volumes soaring to $6.15 billion. Yet, the momentum did not stop there. The following day, February 26th, witnessed an even more promising leap, with trading volumes reaching a monumental $7.64 billion. As a result of these rising inflows, Bitcoin price continues to gain the buying interest in the market and now aims for a new ATH before the halving event.

What’s Next For BTC Price?

Bitcoin has been breaking above continuously as it aims for $60K by this weekend. However, the rally has recently met a minor correction around $59,500 for a cooldown of the heated market sentiment. However, this level is expected to break soon as the current on-chain metrics and sentiment support buyers. As of writing, BTC price trades at $59,311, surging over 4.5% from yesterday’s rate.

The upward trend in moving averages, along with the Relative Strength Index (RSI) trading within the overbought territory at level, signals that the market momentum is leaning towards the buyers. A decisive climb above $60K could pave the way for an upswing towards $68K.

For the bears, the clock is ticking. To halt the potential rally, they need to quickly pull the price below the moving averages. Achieving this could see Bitcoin retreating to its breakout point of $53K.

Should the price stay above the moving averages, the momentum might favor bulls, which is expected to form a strong resistance. Surpassing immediate Fib channels to further gains; however, sellers might defend the $60K mark.

On the flip side, a reversal from $53,000 might keep the pair in a holding pattern for an extended period. A dip below $50,500 could push the price down to $48,980, a pivotal support level in the short term.