Bitcoin (CRYPTO: BTC) has stabilized above $64,000 as rising ETF inflows and futures open interest has helped to offset the ongoing risk-off sentiment in the market. BTC was trading at $64,420, up by 12% from its lowest point this year.
Bitcoin ETF Inflows and Futures Open Interest Jump
There are signs that American investors are embracing Bitcoin, even as a risk-off sentiment spreads in the market. On Friday, the Nasdaq 100 and S&P 500 indices dropped by over 1% as AI jitters escalated. The US-Iran crisis also escalated, with crude oil prices soaring by over 15% from the lowest level this year.
SoSoValue data shows that spot Bitcoin ETFs had inflows in the last four consecutive days. They gained $132 million on Friday, bringing the weekly inflows to over $75 million. Rising inflows in a period when Bitcoin is struggling is a sign of accumulation.
More data shows that Bitcoin demand is rising. CoinGlass data shows that the futures open interest has jumped to $47.6 billion from last month’s low of $44 billion.
This is happening at a time when the weighted funding rate has remained positive since June 25. Funding rate refers to the small fee that bulls and shorts pay to keep perpetual futures price close to the spot price. A positive funding rate means that longs are paying shorts, a sign that there are more buys than sellers.
The next important catalyst for Bitcoin price will come out on Monday when Strategy (NASDAQ:MSTR) releases its corporate activities of last week. In a statement last week, the company said that it raised cash by selling shares and did not sell any Bitcoin. A week before that, it had sold Bitcoin worth over $200 million to boost its cash holdings.
Bitcoin Price is Flashing Bullish Technicals
Bitcoin chart | Source: TradingView
BTC price has formed bullish technicals, pointing to a rebound. It has already moved above the 25-day moving average, a sign that bulls are prevailing.
At the same time, the Percentage Price Oscillator (PPO), which is a unique type of MACD, has been rising, and the two lines have moved above the zero line. It has also formed an ascending channel.
Therefore, there is a possibility that the coin will have a bullish breakout, potentially to the key resistance at $67,375, its highest point on June 15 this year. A move above that price will point to more gains, potentially to $70,000.
Image: Shutterstock