Table of ContentsToggle
Grayscale Investments celebrated a significant turnaround as it recorded net positive inflows into the Grayscale Bitcoin Trust (GBTC) for the first time since its conversion to a Bitcoin exchange-traded fund (ETF) in January. This development marks a reversal from nearly four months of continuous outflows.
Holy crap $GBTC had inflows today. Their 80 day-ish streak is finally over. I had to run my eyes and double check the data but it’s true. https://t.co/I4TTU4q5Q1 — Eric Balchunas (@EricBalchunas) May 3, 2024
According to Farside’s preliminary data, GBTC welcomed $63 million in inflows on May 3, contrasting sharply with the $17.5 billion in outflows it suffered since Jan. 11, when 11 spot Bitcoin ETFs were launched. This shift suggests a potential resurgence in investor interest and confidence in Grayscale’s offering.
Grayscale Not the Only Bitcoin ETF With Inflows
The cryptocurrency investment sector saw a notable influx of funds on the same day across several ETFs. Franklin Templeton’s Bitcoin ETF reported its highest ever inflow, drawing $60.9 million. Leading the day’s inflows was the Fidelity Wise Origin Bitcoin Fund (FBTC) with $102.6 million, while Bitwise Bitcoin Fund (BITB) and Invesco Galaxy Bitcoin ETF (BTCO) also performed strongly, with inflows of $33.5 million and $33.2 million, respectively.
The recent inflows have fueled speculation and discussions within the crypto community regarding their impact on Bitcoin’s price dynamics. Pseudonymous investor DivXman cited GBTC as a previous source of sell pressure, which may now be alleviating, potentially leading to less market strain and increased demand. “That effectively means a significant decrease in sell pressure and additional increase in demand while ETFs collectively are buying more BTC than miners can create,” he shared with his followers.
GBTC inflows of $63M. What does this mean? The Grayscale Bitcoin Trust $GBTC was the primary source of sell pressure across all spot #Bitcoin ETFs since they went live in January 2024.$GBTC leading outflows throughout the year was due to several factors, the most apparent… pic.twitter.com/A0qDzGbuNh — DivXMaN (@crypto_div) May 3, 2024
Crypto trader Jelle, addressing his 80,300 followers, predicted that Bitcoin might soon reach a new all-time high. “60 million dollars worth of inflows for Grayscale’s ETF. The halving chop will come to an end, and 6-figure Bitcoin will follow shortly after,” he speculated.
Grayscale Inflows’ Immediate Impact on Bitcoin Price
Crypto trader Jordan Lindsey commented on the immediate effects of the inflows and outflows on Bitcoin’s price. Lindsey noted that Bitcoin’s price fluctuations are clearly responding to these market movements, indicating a sensitive balance between investor activities and market reactions.
Grayscale records first spot Bitcoin ETF inflow ($63M) since launch. 👀 Price obviously responding both to outflows and inflows. https://t.co/GpyVYDVRPF — Jordan Lindsey (@TradersMastery) May 3, 2024
As the landscape for Bitcoin ETFs continues to evolve, the industry watches closely to gauge the long-term impacts of these financial movements on the broader cryptocurrency market.
Technical Analysis For BTC
Over the recent trading sessions, Bitcoin (BTC) has exhibited a positive trajectory on the 4-hour chart. BTC closed at $63,416.27, following a series of incremental gains from $62,067.32. This upward movement aligns with the broader sentiment observed in the cryptocurrency market.
The 9 EMA and the 20 EMA both show a bullish crossover, a traditional indicator of bullish momentum. The 9 EMA has consistently risen, moving from $60,091.91 to $61,838.13 over the period, indicating sustained buying interest. This is further validated by the 20 EMA, which progressed from $59,970.49 to $60,976.21. The increasing gap between these EMAs suggests that the bulls have firm control of the market at the moment.
The Moving Average Convergence Divergence (MACD) provides further insight into the market’s dynamics. Initially, the MACD was negative but has shown a substantial recovery, moving from a low of -308.42 to a high of 474.74. The signal line has similarly improved, reducing its negative divergence significantly. This narrowing gap and eventual overtaking of the signal line by the MACD indicate a strong bullish momentum.
The Relative Strength Index (RSI) remained well above the midpoint of 50 throughout the sessions, moving from 59.77 to 64.88. This indicates that the asset is neither overbought nor oversold, maintaining a healthy bullish stance without straying into overheated territory.
Key Levels to Watch
The current trading price is hovering near the crucial resistance level of $63,842.02. A break above this could see the Bitcoin price test further resistance at $63,866.00 and $64,021.62. On the downside, support levels are established at $62,862.14, $62,256.00, and $61,860.81. These levels will be critical if the price retracts, providing potential entry points for traders.
Considering the bullish indicators, traders might consider entering long positions if BTC breaks above the resistance at $63,842.02, targeting subsequent resistance levels. Alternatively, should the price pull back, entering near the support level of $62,862.14 with a tight stop-loss could offer a favorable risk-reward scenario for short-term trades. Short positions could be considered if the price decisively breaks below the support at $61,860.81, targeting deeper supports.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Comments