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Key Insights:
- Bitcoin ETF inflows hit $667M, led by BlackRock’s $306M daily IBIT contribution.
- BTC golden cross is forming, signaling a major potential bullish breakout ahead.
- Bitcoin open interest surged to $73B as shorts lost $45M in liquidations in 24 hours
Bitcoin ETF inflows hit $667M, led by BlackRock’s $306M daily IBIT contribution. Bitcoin price golden cross is forming, signaling a major potential bullish breakout ahead. Bitcoin open interest reached $73B, and short positions lost $45M in only one day.
BlackRock Leads ETF Inflows as Bitcoin Price Hits $105K
Thomas Fahrer reported on May 20 that BlackRock’s iShares Bitcoin Trust (IBIT) bought an additional 2,910 BTC. By buying more Bitcoin, IBIT now holds a record-breaking 636,000 BTC in reserves. The rise in inflows points to greater institutional trust, as IBIT accounted for nearly half of Monday’s overall $667 million ETF inflows.
Farside data indicated strong performance from several major ETFs as well. Fidelity also reported $188 million flowing into FBTC, and ARK Invest added $155 million to ARKB. This data showed that more institutions were becoming interested in Bitcoin. This development is powered by greater market optimism and political uncertainties.
Interestingly, this trading session brings the fourth day in a row of inflows over $100 million. BlackRock’s Investments Trust has gathered more than $6.5 billion, the highest amount among U.S. spot Bitcoin ETFs. The rising accumulation could lead to higher prices over the next period.
Bitcoin Golden Cross Nears As Momentum Builds
According to Benjamin Cowen, the 50-day moving average of Bitcoin is nearing the point where it will break through the 200-day moving average. This type of reading usually occurs before major increases in prices. Historically, golden crosses have occurred before strong Bitcoin rallies.
Bitcoin price hovered around $105,565 on Monday, gaining 3% after a week of sideways trading. ETF inflows closely matched the rebound, pointing to a clear link between institutional decisions and market reactions. Once the golden cross is validated, it may prompt larger investors and trend watchers to invest.
Despite the optimism, some caution remains. Analyst Ali Martinez highlighted that Bitcoin price will soon hit a level of resistance. With a hanging man candlestick, bearish RSI divergence, and crossover of the MACD, the market may be approaching exhaustion. For the golden cross to be confirmed, bulls should keep buying in strong numbers.
Spot Buying Accelerates as Selling Pressure Weakens
CryptoQuant data reported that spot net volume delta on Binance flipped positive for the first time in two weeks. The upward trend suggests more people are buying Bitcoin on spot markets than selling it. According to CryptoQuant analyst Darkfost, this change showed that the market sentiment has reversed.
Buying activity increased at the same time as ETF inflows surged. Historically, a rise in net volume has come before short-term market rallies. This market setup, along with a bullish moving average and upward ETF movements, signals a possible buying opportunity.
Moreover, according to Coinglass, Bitcoin futures open interest is now at $73 billion, a 7% increase. Traders have increased exposure as conviction grows. In just a day, over $45 million worth of short speculators were liquidated, as the price kept going up.
Open interest spikes, especially during price gains, typically reinforce trend strength. When the rapid liquidations occurred on May 20, it strengthened the BTC price to recover above $105,000. If Bitcoin price remains above this support level, it may aim to reach its previous highs.
Bitcoin Sentiment Strengthens Despite Technical Caution
While short-term indicators suggest caution, broader sentiment remains bullish. The fact that most recent spot ETF money went to BlackRock and Fidelity points to increased investor confidence. Within the past four days, over $1.1 billion was directed to Bitcoin ETFs.
Bitcoin price is currently consolidating near $105K, a key psychological and technical level. If bulls hold the lead and bullish demand supports the upward break, analysts expect a rise to either $110K or $130K. This is in line with Cowen’s analysis that a golden cross would result in a big break above the resistance.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
