Key Insights:
- A Bitcoin price breakout past $67,000 will confirm a bullish trend reversal with improving on-chain indicators.
- Institutional demand for Bitcoin has returned, as U.S. spot Bitcoin ETFs recorded $244 million in net inflows.
- Gold has resumed its rally alongside Bitcoin, climbing above $4,250, with analysts seeing another 10% upside.
The US-Iran war is seeing the end, and the global oil price is crashing. With this, Bitcoin and Gold have once again come on investors’ radar. Both assets are showing strength, as BTC approaches a break past $65,000. At the same time, the Gold price has surged to $4,200.
Over the past six months, both these assets have seen price-wise and time-wise corrections and entered an accumulation zone.
Bitcoin Price Eyes Strong Breakout Past $67,000
With the Bitcoin price holding firmly at $67,500, market optimism is once again gaining momentum. Popular analyst Daan Crypto Trades noted that BTC must break above the $67,000 level. That would confirm a bullish shift in its daily market structure.
According to the analyst, $67,000 marked the highs for both June and July. Thus, a decisive move above that level would establish a higher high, signaling a potential trend reversal in favor of the bulls.
On the downside, Daan identified the $60,000 level as the key high-timeframe support. This will be the most important level to monitor if BTC faces fresh selling pressure.
Besides, LookonChain also noted that a trader holding a large Bitcoin (BTC) short position has closed 200 BTC. It was worth approximately $12.92 million. The trader realized a loss of about $146,500 to reduce liquidation risk.
Despite trimming the position, the trader continues to hold a 1,400 BTC short. That’s currently valued at approximately $90.44 million. According to Lookonchain, the position’s new liquidation price is $64,998.73 following the partial close.
Crypto analyst Ali Martinez also pointed out that a bullish divergence between Bitcoin price and net capital flows has reappeared. He suggested that the market could be approaching another major bottom.
According to the analyst, the last time this divergence emerged, it marked the cycle low. Following this, the Bitcoin price rallied from approximately $15,000 to an all-time high of $126,000. Martinez said that a similar on-chain signal is visible now.
Bitcoin ETF Inflows Resume
Bitcoin ETF inflows have been rising over the past three trading sessions consistently. It shows that institutional participation has resumed after last week’s net outflows.
On Wednesday, August 5, US spot Bitcoin ETFs registered $244 million in net inflows. Stronger demand for BlackRock’s iShares Bitcoin Trust (IBIT) followed it. IBIT attracted $196.83 million in net inflows, equivalent to approximately 3,035 BTC, as per data from Farside Investors.
Among the other funds, ARK 21Shares’ ARKB recorded $37.63 million in inflows, followed by Fidelity’s FBTC with $11.28 million.
Similarly, Bitwise’s BITB saw $10.56 million in net inflows, and Morgan Stanley’s MSBT saw $2.79 million. The rest of the ETFs listed in the US market saw zero net flows.
BitMEX co-founder Arthur Hayes recently published his latest essay dubbed ‘Situationship.’ There, he said excessive spending on data centers and AI infrastructure could cause an eventual AI bubble. It would resemble the 2008 global financial crisis more closely than the 2000 dot-com crash.
Hayes added that any resulting monetary easing and liquidity expansion by central banks would likely create a favorable macroeconomic environment for a Bitcoin price rally.
Gold Price Surges Past $4,250
Along with Bitcoin, the rally in the precious metals has resumed once again. The Gold price has surged past $4,250 for the first time since June, after adding $180 yesterday. Veteran trader Peter Brandt said gold continues to follow a technical setup based on his proprietary Cw/O chart pattern.
According to Brandt, the current pattern points to a potential upside target in the $4,517 to $4,830 range. The analyst said the existing chart structure remains consistent with the bullish setup.
Chinese investors are once again rushing their capital back into Gold. Over the past 14 consecutive trading sessions, the Chinese Gold ETFs have attracted approx. $1.2 billion.
The renewed demand follows a prolonged period of weakness. During that period, China’s gold-backed ETFs recorded net outflows in 38 of the previous 44 trading sessions, reported The Kobeissi Letter.
Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
