Bitcoin Reaches 10-Day Peak, Driven by ETF Inflows and Bullish Indicators

Bitcoin price has surged to its highest 10-day high, surpassing $69,000, driven by an uptick in strength in the first Wall Street trading session. The inflow of positive sentiment has been attributed to the return of net inflows into United States spot Bitcoin exchange-traded funds (ETFs), which had previously been experiencing outflow days. Despite significant outflows from Grayscale Bitcoin Trust (GBTC), BTC/USD has maintained its upward momentum, suggesting a potential resurgence in investor interest and speculation of a possible surge towards $100,000.

Bitcoin Soars to Ten-Day Highs, Fueled by ETF Inflows and Technical Momentum

On March 25, Bitcoin (BTC) surged above the pivotal $69,000 resistance zone, marking its highest daily close in ten days. The cryptocurrency's rally was fueled by a combination of bullish technical indicators, positive developments in the exchange-traded fund (ETF) market, and a shift in sentiment among traders.

ETF Strength Bolsters BTC Price

Data from Cointelegraph Markets Pro and TradingView reveals that BTC/USD gained significant momentum during the first Wall Street trading session, adding around $4,600 to its value. This upward trajectory continued after the market close, with Bitcoin surpassing the $71,000 mark at press time.

Financial commentator Tedtalksmacro attributed the recent price surge to a return of net inflows into US spot Bitcoin ETFs. These funds had experienced "red" flow days during the previous week, with weak uptake and record outflows from the Grayscale Bitcoin Trust (GBTC).

"After 5 consecutive outflow days, Bitcoin spot ETFs saw +$15.4M USD flow in on Monday. +262M from Fidelity," Tedtalksmacro wrote on X (formerly Twitter), highlighting the resurgence of buying interest in the ETF market.

Technical Indicators Signal Bullish Continuation

Beyond ETF inflows, technical indicators also bode well for Bitcoin's continued bullish momentum. Popular trader and analyst Matthew Hyland noted that a classic BTC price metric, the Relative Strength Index (RSI), had reset to levels last seen when Bitcoin traded around $40,000 in late January.

Hyland interpreted the subsequent flushing of daily RSI values below the key 50 level on March 20 as a positive signal for the current rebound. At press time, daily RSI stood at just above 60, indicating a potential further upside if it breaks above the classic bull market territory of 70.

Unfilled CME Futures Gap Raises Questions

Analyst Mark Cullen acknowledged the presence of "gaps" in CME Group Bitcoin futures markets, which often serve as near-term price targets. One such gap, left unfilled below $64,000 over the weekend, remains a potential concern.

Cullen suggested that BTC/USD could potentially fill the upper CME gap before consolidating in a triangle pattern and pushing higher. However, trader Daan Crypto Trades downplayed the significance of the gap, arguing that it could be disregarded if the price remains sufficiently distant from it.

"First time in a while where we actually made a considerable gap and didn't immediately close it," Daan Crypto Trades wrote on X. "Would not look at this gap too much as long as the price is so far away. Often during big breakouts, we leave gaps like these behind."

Conclusion

Bitcoin's surge to ten-day highs on March 25 highlights the continued bullish sentiment in the market. ETF inflows, favorable technical indicators, and a shift in trader sentiment have all contributed to BTC's recent rally. While the presence of an unfilled CME futures gap could potentially pose a challenge, analysts remain optimistic about the long-term bullish prospects for Bitcoin.

It is important to note that this article does not provide investment advice or recommendations. All investments and trading involve risk, and readers should conduct thorough research before making any decisions.