Traders Predict Parabolic BTC Surge from Bitcoin ETF Flows

Bitcoin is poised to enter a “parabolic run,” driven by increasing inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), according to several crypto analysts. For 19 consecutive days, spot Bitcoin ETFs have seen positive inflows, with nearly $1.7 billion entering just this week alone, as per data provided by Farside Investors. Analysts are predicting that if this pattern continues, Bitcoin’s price will exceed its previous all-time high of $73,835 set in March.

By June 6, more than $15.5 billion had been funneled into spot Bitcoin ETFs, which now hold approximately 5.2% of all circulating Bitcoin, based on information from HODL15Capital. Analysts emphasize that continuous inflows into ETFs, in addition to various other factors, will likely push Bitcoin (BTC) beyond key resistance levels and into uncharted price territories.

Independent trader Jelle illustrated this point by sharing a BTC weekly chart, focusing on the $72,000 psychological resistance level. According to him, the price repeatedly tests this barrier, and with substantial ETF demand combined with neutral funding rates, it seems only a matter of time before prices climb higher. Jelle expressed confidence that the massive ETF demand would eventually overpower current resistance levels.

Bloomberg’s Senior ETF analyst Eric Balchunas echoed Jelle’s optimism in a recent post. He commented on a significant $379 million upswing in Bitcoin ETF inflows, calling this surge part of a “third wave” that may turn into a “tidal wave,” amplifying BTC’s price substantially.

The recent surge in ETF inflows coincides with renewed interest in digital asset-focused investments. In May alone, $2 billion flowed into such investments, driven by growing investor confidence and the perception that regulatory bodies are becoming more accommodating. The substantial capital inflows suggest an increasing comfort level among investors regarding digital assets, which could further bolster Bitcoin’s price surge.

Pseudonymous trader and analyst Moustache also noted a pivotal moment for Bitcoin. He pointed out that the cryptocurrency is about to breach a crucial resistance line on the five-day chart. According to him, such a crossing suggests the start of a final parabolic run, based on historical patterns from 2012, 2016, and 2020. Moustache’s analysis holds significant weight among his over 122,400 followers on social media, and he implied that the “2024 cross” is imminent.

Jelle shared similar observations, noting that Bitcoin’s price had broken above its all-time highs on the weekly chart after a prolonged period of acting as resistance. According to Jelle, maintaining this level indicates the start of an upward parabolic trend, mirroring past market behavior where history seems to repeat itself.

Bitcoin was recently valued at over $71,000, showing minor fluctuations within the past 24 hours and trading about 3.6% below its all-time high of $73,835, recorded on March 14. The cryptocurrency has appreciated more than 4% over the last week and boasts a 68% year-to-date increase.

The current market dynamics signal a robust investor interest and potential for price increases. The increasing inflows into spot Bitcoin ETFs reflect growing trust in the crypto market, and sustained investor interest could push Bitcoin into unprecedented price territories. Should the patterns observed by traders like Jelle and Moustache hold true, Bitcoin may indeed be on the verge of a significant parabolic run, making the coming months particularly interesting for crypto investors.