Spot Bitcoin ETFs Post Significant Inflows
Bitcoin (BTC) exchange-traded funds (ETFs) experienced a significant turn of events on Thursday, recording $240 million in net inflows. This influx marked the end of a six-day streak of net outflows, leading traders to anticipate an imminent recovery for the cryptocurrency. The sustained support for Bitcoin appears to be closely tied to its ability to hold the 50-week exponential moving average (EMA).
The period of net outflows began on October 29 and extended through Friday, with Tuesday witnessing the largest outflow of $577.74 million. This outflow streak followed a broader market correction that saw the price of Bitcoin plunge below $100,000 for the first time since June, reaching a four-month low of $98,900 on Tuesday. By Friday, the BTC/USD pair had recovered by 3%.
Among the top performers, BlackRock's ETF, IBIT, recorded the largest inflow at $112.4 million. Fidelity's FBTC followed with $61.6 million, and ARK Invest's ARKB contributed $60.4 million. Bitwise's BITB saw more modest inflows of $5.5 million and $2.48 million, while other ETFs experienced no significant inflows or outflows.
Despite the recent outflows, cumulative net inflows for spot Bitcoin ETFs remain strong at $60.5 billion. The total net assets across all spot Bitcoin ETFs currently stand at $135.43 billion, representing 5.42% of Bitcoin's total market capitalization.
Bitcoin's 50-Day EMA Holds as Key Support Level
Following its dip to $98,000 on Tuesday, Bitcoin swiftly reclaimed the psychologically important $100,000 level. This price point coincides with the 50-day exponential moving average (EMA), indicating aggressive defense by bulls. This trendline has historically provided support for the price since September 2023, and its breach would be a significant negative development for market sentiment.
YouTuber Lark Davis highlighted the critical nature of this support level in a post on X on Thursday, stating, "Bitcoin is sitting right at the 50-week SMA, the line in the sand. If we close below the 50-week SMA, things could get complicated."
If we close below the 50-week SMA, things could get complicated.
Pseudonymous technical analyst Chad confirmed that Bitcoin is still holding the 50-week EMA and emphasized the importance of closing the week above this level for the BTC/USD pair.
Fellow analyst Rekt Capital noted that Bitcoin appears to be forming a bottom around the 50-day EMA. He suggested that a "cluster of lower lows" at this level would be necessary to establish a confirmed bottom.
As previously reported, the Market Value to Realized Value (MVRV) ratio indicated that $98,000 may have represented a local bottom for Bitcoin. This suggests that the price could recover due to seller exhaustion in the market.