Bitcoin ETF Inflows Surge: Is Breaking $85,500 Resistance Possible?

Bitcoin ETFs saw over $100 million in net inflows on Thursday following prior outflows of nearly $170 million. BlackRock’s IBIT led with $81 million, reflecting institutional confidence despite a slight price rise of 0.30% for Bitcoin. Key technical indicators are mixed; a bullish breakout above $85,472 could push prices towards $86,000, while bearish pressure poses risks of drops towards $80,000.

On Thursday, Bitcoin exchange-traded funds (ETFs) experienced a significant rebound, attracting over $100 million in net inflows after a prior drop of nearly $170 million. BlackRock’s iShares Bitcoin Trust (IBIT) led this resurgence with nearly $81 million, while Fidelity’s FBTC followed with $25.9 million. This momentum suggests that institutional confidence in Bitcoin remains robust, despite a slight 0.30% increase in Bitcoin’s price over the previous 24 hours, accompanied by a negative funding rate and mixed technical signals.

Following a dip midweek, ETF buyers returned, resulting in $100 million in net inflows for Bitcoin ETFs. BlackRock’s IBIT recorded the largest contribution, while Fidelity’s offerings also drew attention. This rebound indicates that the previous outflows do not reflect an ongoing trend but rather a temporary dip, bolstered by a 5% rise in futures open interest, indicating active trading from both bullish and bearish participants. However, a negative funding rate suggests a cautious sentiment among traders.

On April 17th, Bitcoin’s price movement began with a slight dip but shifted positively upon the formation of a golden cross on the 5-minute BTC/USDT chart, indicating bullish momentum. This was confirmed when the RSI entered the overbought territory. However, a bearish death cross later led to a price drop testing support at $83,737.88. Following this, renewed buying interest emerged, but resistance near $85,472.45 proved challenging to maintain as another bearish signal occurred.

Looking ahead, Bitcoin’s ability to consolidate above key support levels is crucial. If Bitcoin can mount above $85,472, it may target $86,000, signalling bullish momentum. Conversely, if selling pressure re-emerges, Bitcoin could breach support at $83,737, with potential declines towards $80,000. Market observers should continue monitoring developments as institutional interest remains a significant factor in future Bitcoin price movements.