Bitcoin Price Is Testing Crucial Level For Confirming The Uptrend as BTC ETFs See Massive Inflows
Bitcoin is currently testing the 200-day simple moving average, a key level for confirming its upward trend. Historically, failing to reclaim this level has led to corrections, as seen in 2020, 2018, and 2014.
Furthermore, Bitcoin ETFs have had substantial inflows: on September 19, 2024, $158 million into Bitcoin and $5.2 million into Ethereum. These inflows show increased investor interest since they follow the 0.5% interest rate drop by the Federal Reserve.
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Bitcoin Testing the 200-Day SMA
Crypto analyst Ali pointed out that Bitcoin is once again testing the 200-day SMA, a crucial indicator for confirming a sustained uptrend.
Ali noted in his tweet that earlier failures to hold this level often set off corrections, hence this is a crucial field of observation. A rejection here could indicate some negative aspects of Bitcoin.
The SMA for 200 days acts as a long-term indication; breaking above it could carry on the positive momentum. If Bitcoin falls short of this degree, though, it might suffer more losses.
ETF Inflows for Bitcoin and Ethereum
Spot On Chain reported that Bitcoin ETFs recorded $158 million in inflows, with Ethereum ETFs seeing $5.2 million. This shift occurred after the Federal Reserve cut interest rates by 0.5%, contributing to positive net flows for both assets.
The inflows demonstrate increased institutional interest in Bitcoin and Ethereum, reinforcing their position in the market. The lack of outflows suggests investor confidence, particularly after the recent economic policy changes.
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Bitcoin’s Price Action
Per CoinGecko data at publication, Bitcoin’s price reached $63,646.37, backed by a daily trading volume of over $43 billion. The price has risen by nearly 10% over the past seven days, reflecting a strong market recovery. Ethereum also experienced inflows, solidifying its standing as a top altcoin.
Despite the recent rally, analyst Ali warns that Bitcoin’s price remains at a critical point. If it fails to hold above the 200-day SMA, a correction may follow, making the coming days pivotal for Bitcoin’s price trajectory.
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