BTC price set to break 7-month slump as Bitcoin ETFs hit $65B record
Bitcoin’s market landscape is stirring with optimism as analysts suggest that the seven-month price downtrend may finally be nearing an end. The anticipation of a breakout is primarily fueled by record inflows into Bitcoin ETFs, pushing their value to $65 billion, and technical chart signals that show resistance levels weakening.
Bitcoin Price Set to Break Free
Since reaching its peak of $73,800 earlier this year, Bitcoin has been consolidating within a downward-sloping channel. Despite multiple attempts to breach this resistance, the price remained range-bound. However, this week, Bitcoin’s price action has been showing signs of a potential breakout.
The upper resistance of this channel, situated around $68,000, is now being tested by bullish investors. If Bitcoin closes this week above this threshold, it could signal the start of a new bullish phase. Traders and analysts have expressed cautious optimism, with one key chart showing Bitcoin attempting to break past the channel’s upper edge for the first time since March.
Analyst Rekt Capital commented on X, “Bitcoin has experienced a rejection from the top of the Downtrending Channel… it's essential Bitcoin Weekly Closes inside the red resistance to avoid a deeper rejection from here.” This sentiment captures the importance of Bitcoin’s current price level, as a successful close above resistance could pave the way for a sustained rally.
Bitcoin ETFs Surge to Record Highs
Institutional demand for Bitcoin is another key driver behind the recent optimism. Bitcoin ETFs have reached new heights, with total assets hitting $65 billion — an all-time record. For context, gold ETFs took five years to reach this milestone, a feat Bitcoin has achieved in less time.
Senior ETF analyst at Bloomberg, Eric Balchunas, noted this sharp rise in investor interest. “Total net flows of the United States spot Bitcoin ETFs have topped a record $20 billion, with total assets now standing at $65 billion,” he stated, highlighting the growing adoption of Bitcoin among institutional investors.
This trend is further supported by inflows into Bitcoin investment vehicles globally, which have already surpassed 360,000 BTC in net yearly inflows, approaching the previous record set in 2020. This level of demand suggests that, despite Bitcoin’s price struggles over the past months, the broader market view remains positive.
Bulls vs Bears: The Weekly Close Battle
One of the most watched metrics by traders now is the weekly close. Analysts are paying close attention to whether Bitcoin can hold above the $68,000 mark by the end of the week, as it would be a strong indication of a bullish reversal. The bears, on the other hand, are trying to push the price back into the channel.
On lower timeframes, Bitcoin has already seen daily closes outside of the downtrend channel, providing traders with more optimism. Technical analysis shared by Daan Crypto Trades on X shows Bitcoin clearing key moving averages like the 200-day simple moving average (SMA) and exponential moving average (EMA). According to Daan, this breakout could indicate the start of a new upward trend.
What Lies Ahead for Bitcoin?
While some analysts remain cautious, others are bullish about Bitcoin’s near-term prospects. Historical data shows that October and November are among the best-performing months for Bitcoin, with average gains of 22.9% and 46.81%, respectively. Given this, some investors believe Bitcoin is poised for a strong fourth quarter.
Popular crypto analyst Titan of Crypto remarked that October could be the month Bitcoin starts its final leg of the bullish cycle, with historical trends backing this potential surge. “It’s likely time for BTC to wrap up this consolidation phase. History doesn’t always repeat itself, but it often rhymes,” Titan noted, reflecting the sentiment shared by many in the community.
Additionally, Vetle Lunde, a senior analyst at K33 Research, pointed out that Bitcoin investment inflows are on track to surpass previous records, with spot ETFs playing a significant role in this year’s growth.
Conclusion
With technical indicators showing potential for a breakout and institutional interest in Bitcoin surging, the next few weeks will be crucial in determining whether Bitcoin can break its seven-month slump. If Bitcoin manages to close above $68,000, it could signal a return to bullish momentum, potentially leading to new all-time highs in the coming months. However, as always, the volatile nature of cryptocurrency markets means that traders should remain cautious and conduct thorough research before making any investment decisions.
