Bitcoin (BTC) continued to rise on Tuesday, trading above $74,000 as it broke out of a consolidation phase that lasted close to six weeks. This has been a bullish move, as data indicated sustained demand and a tightening of supply.
The breakout followed steady accumulation in the recent weeks. The price of Bitcoin has risen significantly after it cleared the resistance levels that were formed during the consolidation phase. Traders closely tracked the move as it signaled renewed momentum in the broader crypto market.
Bitcoin ETF Inflows Extend for Third Week
This demand continues to sustain the rally. SoSoValue data shows that spot Bitcoin ETFs have recorded $767.33 million of inflows last week. This followed $568.45 million in inflows recorded in the previous week. This data marked the third consecutive week of inflows.
The sustained inflows indicate sustained interest from investors despite the geopolitical risks associated with the US-Israel war with Iran. The overall market sentiment is cautious, but the sustained interest in ETFs indicates that institutional investors remain invested in Bitcoin. This may help stabilize the price in the near term.
Source: SoSoValue
BTC Exchange Supply Hits 2017 Low
On-chain indicators also suggested a tightening of supply. Santiment data shows that the share of Bitcoin held in exchanges has fallen to the lowest since November 2017. This suggested that fewer coins were being held in exchanges for potential sale.
Also Read: Bitcoin Funding Rates Turn Negative as BTC Holds Key Support
A decrease in exchange supply may ease pressure in the near term by reducing sales. If demand is sustained in such a case, it may be beneficial for prices to rise. The current data indicated that market supply continued to decrease as investors withdrew assets from exchanges.
Source: X
Analyst Outlines BTC Breakout Scenarios
Analyst Crypto Patel highlighted that Bitcoin has reached a significant price zone. He said that Bitcoin has recovered important levels and rallied by 23% from its $60,000 support base. He added that Bitcoin is currently trading in a bearish order block between $74,567 and $79,289.
The analyst identified key market scenarios. If there is a rejection within the range, it may result in a new yearly low. A breakout above the range may allow for a run towards the next target, which is between $86,000 and $90,600. If it rises above $90,600, it is a sign of more upward movement.
Source: X
Futures Volume and Open Interest Rise
Derivatives data also reflected increased market activity. CoinGlass data show that future volume increased by 53.85% to $88.82 billion. Open interest also rose by 2.44%, reaching $50.71 billion. The OI-weighted funding rate stands at 0.0021%, showing stability.
Source: CoinGlass
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