Bitcoin Price Prediction Amid ETF Inflows Despite Risk-Off Sentiment

Bitcoin price has done relatively well in the past few days. That’s despite the stock market has plunged and a risk-off sentiment has prevailed in the market. BTC has held steady above the key support level of $60,000. This rebound may continue in the near term as ETF inflows rise.

Bitcoin Price Has Jumped Amid BTC ETF Inflows

Data compiled by SoSoValue shows that American investors continued buying BTC ETFs this week. These funds added over $132 million in assets on Friday, even as the stock market dived. With this, the tech-heavy Nasdaq 100 Index fell by over 2%.

A day earlier, these funds added over $79 million in assets. In total, these funds added over $75 million in inflows this week. They added $197 million in the previous week, bringing the cumulative inflows to over $51 billion. In total, these funds now hold over $77 billion in assets, with BlackRock’s IBIT having $47 billion in assets.

The ongoing ETF inflows is a sign that demand among investors is rising. That’s possible as they move from the semiconductor and memory industries. Data shows that some of the top stocks, including popular names like Nvidia, Micron, AMD, and Intel have all plunged.

One potential reason behind the inflows is that investors cheered the recent US consumer inflation report. A report released on Tuesday showed that the headline and core consumer inflation dropped in June.

Another report on Wednesday revealed that the producer price index (PPI) eased in June. This reduced the possibility that the Federal Reserve will hike interest rates in the coming meeting. Odds of Fed hikes happening this year have dropped on Polymarket.

Another possible reason behind the ongoing Bitcoin ETF inflows is that Strategy did not sell BTC last week. In a statement, the company said that it raised cash by selling more shares. A week earlier, the company raised cash by selling Bitcoin worth over $200 million.

Bitcoin is also rising as the Crypto Fear and Greed Index has started moving upwards. It has risen from the extreme fear zone of 16 to the fear zone of 34. It is common for the crypto market to do well when this gauge is jumping.

Bitcoin Faces Some Major Risks Ahead

Despite the ongoing stability, the Bitcoin price faces some major risks ahead. One of the top risks is that some companies will start selling Bitcoin, joining Strategy. It is raising cash to pay dividends to its preferred stockholders.

Empery Digital has already sold 1,400 coins. More companies, especially those in the mining space like MARA Holdings and Riot Platforms may sell to raise capital to fund their AI ambitions. A recent report showed that these companies will require $50 billion worth to fund their AI data centers.

Another risk is that the ongoing Bitcoin stability is a dead-cat bounce (DCB). It’s a situation where an asset in a freefall bounces back temporarily and then resumes the downtrend.

BTC Price Prediction: Technical Analysis

The four-hour chart shows that the BTC price has jumped from a low of $57,720 in June to the current $63,975. Most recently, it has formed an ascending channel and is inside it.

The coin has moved slightly above the 50-period Exponential Moving Average (EMA). At the same time, the Stochastic Oscillator has jumped and moved above the neutral level of 50.

Bitcoin has formed what looks like an inverted head-and-shoulders pattern, which normally leads to more upside. Therefore, the coin will likely bounce back, potentially to the psychological level of $70,000.

On the other hand, a drop below the key support level of $62,000 will point to further downside. It may potentially go to $60,000.