Technical chart patterns indicate that Bitcoin may experience further upward momentum in the coming weeks, reflecting past bull cycles.
Bitcoin (BTC) fell to $69,862 but recently surged above the $70,000 mark for the first time in six weeks. Here’s why you should have taken advantage of the dip below $70,000 to buy Bitcoin.
Bitcoin funding rates rise to 6-week highs
According to TradingView, Bitcoin surged to a six-week high of $71,401 on May 20, a price level last observed on April 9.
With Bitcoin bouncing back above the psychologically significant $70,000 threshold, the funding rate has also begun to climb. According to Coinglass, Bitcoin’s funding rate has surged to 0.0187%, marking its highest point since April 9. This indicates that a majority of traders are bullish on BTC.
A positive funding rate signifies a leaning towards traders utilizing leverage while taking long positions in Bitcoin (buying). Prior to Bitcoin surging to $70,000, funding rates remained below the 0.01% threshold for the preceding month, indicating growing confidence among Bitcoin buyers.
BTC price technicals favor more upside
Boosting investor morale, the 4-hour Bitcoin chart has revealed an inverse head and shoulders pattern, a tool utilized by traders to detect a shift from bearish to bullish trends.
The inverse head and shoulders pattern observed in Bitcoin’s chart might indicate a potential surge in upward momentum, as suggested by renowned crypto analyst Moustache.
Bitcoin chart fractal mirrors hi
Fractals denote technical chart formations that recur across various timeframes and charts, irrespective of the extent of zooming out on the asset’s price movements.
Examining Bitcoin’s current surge on the weekly chart through a fractal analysis lens reveals similarities to its rally back in November 2021, during which BTC surged from $31,000 in July to $69,000 by November.
Should historical chart patterns repeat, Bitcoin might potentially experience further upward momentum in the weeks ahead.
Furthermore, the price movement of Bitcoin appears to mirror the 2017 bull market, as highlighted by renowned cryptocurrency analyst Jelle.
Bitcoin ETF flows turn positive
In the United States, spot Bitcoin exchange-traded funds (ETFs) experienced two weeks of consecutive positive inflows, following three weeks of net negative outflows. During the previous week, these U.S. Bitcoin ETFs acquired more than $200 million worth of Bitcoin, and on the week of May 6, they accumulated over $413 million, as reported by Dune.
According to data from Farside Investors, Bitcoin ETFs experienced inflows of over $235 million on May 20, surpassing the net inflows of the preceding week.
The recent surge in Bitcoin to new record highs was substantially fueled by institutional investments through ETFs. As of February 15th, Bitcoin ETFs constituted approximately 75% of fresh capital inflows into the leading cryptocurrency, propelling it beyond the $50,000 milestone.
Read More: Will Bitcoin crash again?
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