Bitcoin is recording a stellar year, and the uptrend looks set to continue amid $16 billion in profits by short-term whales, buoyed by spot Bitcoin ETF buyers.
After last week’s price correction, Bitcoin appears to have recovered, with its eyes set on reaching new highs. The leading cryptocurrency is trading well above $70,000 at the time of writing, having surpassed $71,500 earlier in the day.
In terms of where the price could be heading next, experienced analyst Ali Martinez has noted the formation of strong support and an ascending triangle on the lower timeframes. Per the analyst, Bitcoin seems to have broken out of the triangle, with the $70,400 range serving as support.
As long as the support holds, BTC could break above the $71,800 mark and reach a new high in the coming days. A break above the recent ATH above $73,000 will begin a new period of price discovery, paving the way for the realization of some bullish Bitcoin price predictions.
It appears that #Bitcoin is breaking out of an ascending triangle on the lower time frames, which could see $BTC rise toward $71,800 as long as the $70,400 support holds. pic.twitter.com/CQUyrc9vkv
— Ali (@ali_charts) March 26, 2024
Spot Bitcoin ETF Buyers Play Their Part
Bitcoin’s impressive performance this year is primarily due to inflows into spot Bitcoin ETFs in the U.S. Unsurprisingly, Bitcoin’s most recent dip coincided with five days of consecutive net outflows, the longest since the investment products went live in January.
However, the negative trend was broken on Monday, with the funds seeing a mild net inflow of $15.4 million. Bulls remain optimistic that the improved figure will mark a turnaround from what has been a rare negative flow period for the Bitcoin ETFs.
In the meantime, it is worth noting that as a result of the contributions from the spot Bitcoin ETFs, BTC short-term holder whales now sit on $16 billion of unrealized profits. Nonetheless, CryptoQuant’s CEO Ki Young Ju, expressed confidence that the spot ETF buyers are long-term holders and may not exit their position for a 16% profit.