Bitcoin Price Holds $65,000 Level as US Spot ETFs Record Inflows
Bitcoin (BTC) is trading slightly up on Wednesday, rising by 0.14% to $65,158 after closing above the daily resistance level of $64,913 the day before.
Here’s a breakdown of the factors driving Bitcoin’s recent price action:
- **US Spot Bitcoin ETFs** recorded inflows totaling $422.50 million on Tuesday, the largest since June 6. This signals strong investor interest in Bitcoin.
- **On-chain data** suggests that BTC is undervalued. The MVRV Z-Score, which measures the market value to realized value, is currently at -0.05, indicating a potential market bottom and continuation of the bullish trend.
- **Mt. Gox Update:** Kraken, one of the exchanges involved in repaying Mt. Gox creditors, has received a significant amount of Bitcoin from the bankrupt exchange. This event resulted in a slight decline in cryptocurrency prices.
- **Hermetica**, a Bitcoin DeFi protocol, launched its BTC-backed USDH on Bitcoin’s L1 using the Runes protocol. This development allows Bitcoin users to access alternatives that reduce reliance on centralized exchanges and fiat-backed stablecoins.
Technical analysis indicates that Bitcoin’s price looks promising. The price surged above a descending trendline on Sunday and achieved a close above the daily resistance level on Tuesday. The RSI and Awesome Oscillator are both above their neutral levels, indicating bullish dominance.
However, if BTC closes below $56,405 and forms a lower low in the daily timeframe, it may signal persistent bearish sentiment.
While the recent price action is encouraging, it’s important to remember that cryptocurrency markets are inherently volatile. Investors should conduct their own research and invest only what they can afford to lose.
