Key Points
- Bitcoin (BTC) has surpassed the $70,000 mark for the first time in six weeks.
- The rise in Bitcoin’s price has led to increased funding rates and positive ETF flows.
Bitcoin (BTC) has reached a six-week high, climbing past the $70,000 threshold for the first time since early April. The cryptocurrency’s funding rate has also seen an increase, indicating a surge in long Bitcoin positions among traders.
Rising Bitcoin Funding Rates
The funding rate for Bitcoin has risen to 0.0187%, the highest level seen since April 9. This increase suggests a growing confidence among Bitcoin traders, who have been leveraging long positions. Prior to this recent surge, funding rates had remained below the 0.01% mark for a month.
Positive Price Technicals
Fueling this confidence is a recently observed inverse head and shoulder pattern on the 4-hour Bitcoin chart. This pattern is often used by traders to identify a potential trend reversal from bearish to bullish. Such a pattern could indicate further upward momentum for Bitcoin.
From a fractal analysis perspective, the current Bitcoin rally mirrors its surge in November 2021. If these patterns continue to repeat, Bitcoin could see further upward momentum in the coming weeks.
Bitcoin ETF Flows Increase
Institutional inflows into U.S. Bitcoin exchange-traded funds (ETFs) have been positive for two consecutive weeks, following three weeks of net negative outflows. Over the past week, U.S. Bitcoin ETFs have accumulated over $200 million worth of Bitcoin, and over $413 million in the week of May 6.
On May 20, Bitcoin ETFs saw positive inflows worth over $235 million, more than the net inflows of the previous week. These inflows from ETFs have played a significant role in the current Bitcoin rally, accounting for about 75% of new investment in the cryptocurrency as it surpassed the $50,000 mark in mid-February.
