Bitcoin has seen a bold recovery in the last 24 hours after posting a 3% gain. The king of cryptocurrencies was trading at $59,018 as of 02:21 a.m. EST.
BTC’s performance this week has starkly contrasted with what happened last week. At the time, selling pressure triggered a notable decline in Bitcoin to around $54,000.
Bitcoin Price Analysis
Bitcoin’s recent upswing comes amid a rise in buyer interest. Buyers appear to be buying the recent price dip despite the Bitcoin Fear and Greed Index remaining below the 30 level, showing a state of fear.
The chart below shows that the Relative Strength Index (RSI) level is above 70 amid the recent increase in buying pressure. The RSI has been bouncing off the 50 level, indicating that sellers are inactive and not participating in the market.
A look at the Bollinger bands also confirms that the bullish thesis is at play as the Bitcoin price has touched the upper Bollinger band.
BTC price bouncing from the 20 Simple Moving Average (SMA) to the upper band indicates a strong trend.
BTC will likely hit the next demand zone at $60,000 if the buyers keep up the momentum. In that case, the coin will soar to test the next resistance level at $63,800.
However, one must be cautious when buying at high levels because the price touching the upper band and hitting the overbought levels could signal a potential reversal. Such a reversal will happen if traders decide to sell and take profits.
Trader @MikubullCrypto on X confirms the bullish thesis, saying that Bitcoin has bottomed, with the current trend mimicking the one in Q3 2023. The largest crypto is set for a massive price gain in this case.
The recent gain in Bitcoin price has seen over $24 million in short positions liquidated in the last 24 hours, according to Coinglass.
Bitcoin ETF Inflows Increase
The recent performance in Bitcoin comes as the largest cryptocurrency by market capitalization continues to post an increase in inflows for its spot Bitcoin exchange-traded funds (ETFs).
On July 9, SosoValue data shows that Bitcoin ETFs’ inflows hit $216 million. Wall Street giants BlackRock and Fidelity scooped the biggest inflows of $121 million and $90 million, respectively.
The Bitcoin ETFs have been playing a pivotal role in scooping more Bitcoin and alleviating the selling pressure of the German government. Between July 5 and July 7, Bitcoin ETFs purchased $438 million worth of Bitcoin.
The positive BTC performance comes as Federal Reserve Chair Jerome Powell said it was not ready to trim interest rates. Powell noted a need to acquire more data to boost confidence in the US economy.
Bitcoin bulls promote it as a good hedge against inflation. Therefore, with data showing that inflation levels are not easing, BTC could be poised for further gains.
