Bitrabo Editorial
A significant bullish signal for Bitcoin (BTC) has emerged as the leading cryptocurrency experienced over $2.1 billion in net inflows to spot exchange-traded funds (ETFs) over a week.
Possible New Record Price for Bitcoin?
Bitcoin might be on track to achieve a new all-time high (ATH), as the moving average convergence divergence (MACD) histogram has shifted to a positive reading on the weekly chart for the first time since April 2024.
The MACD histogram serves as an important momentum indicator, commonly used to forecast the asset’s price movements. This tool allows traders to spot momentum changes, where positive values indicate growing upward momentum and negative values suggest downward movement.
The MACD is computed by subtracting Bitcoin’s 26-week moving average from its 12-week moving average. A signal line, built by averaging the MACD over nine weeks, is also included, with their difference visually represented as a histogram.
The histogram height signifies the strength of the trend, helping traders to identify when to buy or sell. The current chart displays the MACD turning upward after previously remaining in negative territory since April 2024.
The recent positive shift in the MACD histogram indicates an uptick in market buying interest for BTC. This trend suggests a strengthening of Bitcoin’s short-term price movement compared to its longer-term trends, potentially pushing it beyond its previous ATH of $73,737 recorded in March 2024.
This bullish MACD shift aligns with supportive macroeconomic changes, like the US Federal Reserve’s move to lower key interest rates to enhance business investment. Analysts in the crypto space believe that additional rate cuts could provide BTC with the momentum needed to surge in Q4 2024.
Spot BTC ETFs See $2.1 Billion Weekly Net Inflows
Another positive development indicating buoyancy for Bitcoin is the robust weekly inflows into US-based spot BTC ETFs.
Data from SoSoValue indicates that the total weekly net inflows for spot BTC ETFs reached $2.13 billion for the week ending October 18. This figure marks the highest weekly inflows since March 2024 when Bitcoin hit a new ATH of over $73,000.
As of October 18, the total cumulative net inflow to US spot BTC ETFs has reached $20.94 billion, with total net assets amounting to $66 billion, which accounts for nearly 4.9% of Bitcoin’s overall market capitalization.
Since receiving approval from the US Securities and Exchange Commission (SEC) earlier this year, spot Bitcoin ETFs have attracted significant interest from institutional investors.
For instance, investment firm Morgan Stanley disclosed holding $272 million in BTC ETF assets, which represents around 2% of their total assets under management.
However, a drop in interest among retail investors is apparent, reflected in diminishing search queries for Bitcoin terms on Google, indicating some hesitance to invest attributed to perceived volatility. Currently, BTC is trading at $68,048, having fallen by 1.2% in the last 24 hours.
