The key momentum indicator for Bitcoin (BTC) has turned positive, as the cryptocurrency startup attracted more than $2.1 billion in weekly inflows for the spo exchange-traded fund (ETF).
The new all-time-virtual Bitcoin?
Bitcoin may be headed for an all-time high (ATH), as the histogram of the average convergence divergence (MACD) has turned positive on the weekly chart for the first time since April 2024.
For the uninitiated, the MACD histogram is an important momentum indicator that is widely used to measure the future price of an underlying asset. The indicator helps traders identify changes in momentum, with positive values ​​suggesting higher momentum and negative values ​​indicating lower inflation.
The MACD is calculated by subtracting the 26-week Bitcoin average from the 12-week average. In addition, a signal line is created based on the MACD average over nine weeks, and the difference between the MACD and the signal line is displayed as a histogram.
Notably, the height of the MACD histogram shows the strength of this trend, which helps to determine possible buy or sell points in the market. In the chart below, the MACD is bullish after staying in the red since April 2024.
In terms of BTC, the recent positive change in the MACD histogram indicates a growing buying interest in the market. It suggests that the short-term price trend of Bitcoin is gaining strength compared to its long-term trend, indicating a strong upward movement above its ATH price of $73,737 in March 2024.
The volatile MACD is well aligned with other positive macroeconomic developments, including the US Federal Reserve’s (Fed) decision to cut key interest rates to stimulate business spending. Crypto Analysts predict that further cuts in interest rates will give BTC the necessary ammunition to rally in Q4 2024.
Spot BTC ETFs Post $2.1 Billion in Weekly Net Inflows
Another factor that paints a positive picture of the leading digital asset is the strong weekly income returns on US-based BTC ETFs.
In accordance with data from SoSoValue, total weekly inflows into the BTC ETF space for the week ending October 18 were $2.13 billion. This marks the highest total weekly income since $2.6 billion in March 2024, when BTC made a new ATH of over $73,000.
As of October 18, the total inflow of the US spot BTC ETF reaches $20.94 billion, with a total asset of $66 billion, worth about 4.9% of the total Bitcoin market.
Up to them authorization by the US Securities and Exchange Commission (SEC) earlier this year, many institutional investors flocked to Bitcoin ETFs.
Wall Street star Morgan Stanley recently it was revealed had $272 million in BTC ETF companies, representing about 2% of their total assets under management.
However, going down interest in Bitcoin – reflected in low search volumes for Bitcoin keywords on Google – suggests retail participants are still reluctant to invest in BTC due to its volatile visibility. BTC is trading at $68,048 at press time, down 1.2% in the last 24 hours.
Featured image from Unsplash.com, Charts from TradingView.com
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