Bitcoin price is eyeing a technical breakout from an ascending parallel channel pattern as institutional demand returns for the bellwether asset.
Summary
- Bitcoin price is trading within a bullish continuation pattern that hints at more upside over the coming sessions.
- Bitcoin ETFs hit a weekly inflow streak for the first time in 5 months.
According to data from crypto.news, Bitcoin (BTC) price rose 4.2% in the past 24 hours, trading at $70,197 at press time. Now, charts suggest Bitcoin could see more recovery over the following sessions.
On the daily chart, Bitcoin price has formed an ascending parallel channel pattern following its sharp drop in early February. The popular bullish continuation pattern hints at sustained gains as long as an asset’s price remains within the two trendlines that define the corridor.
Further, a breakout from the upper side of the channel tends to accelerate bullish momentum for the related asset.
At the time of writing, technical indicators seemed to suggest that Bitcoin price is on the cusp of such a breakout from the pattern. The 20-day and 50-day moving averages are closing in on a bullish crossover, while the Supertrend flashed green as BTC price moved above it.
As such, $73,226, which aligns with the 50-day SMA, is the most immediate key resistance level traders would be keeping an eye on. A sharp rebound from it could springboard its price to around $86,500, a level that had previously served as a key support area during most of January this year.
On the contrary, if Bitcoin price falls below $67,674, the 20-day SMA, the bullish forecast would be invalidated. Bears could then drag BTC price back to the $65,000 key psychological support level.
A major catalyst that has been providing support for Bitcoin’s recent rebound is the surging demand from institutional investors for the asset.
According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded over $1.35 billion in net inflows over the past two weeks. This marked the first time these investment products managed to draw in back-to-back weekly inflows since early October last year. Additionally, March has also marked the first positive month for these funds after four consecutive months of bleeding.
Meanwhile, firms like Strategy have also played a key role in supporting price action. In its latest filing, the firm noted that it bought $1.28 billion worth of BTC, pushing its total holding valuation to $56.04 billion.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
