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Bitcoin price rebounded on Wednesday, climbing nearly 3% to around $59,000 as fears after last week's breakdown faded. Data from Coinmarketcap shows that BTC price rose from a low of $57,014 on July 10 to an intra-day high of .59,481.
With this rebound, Bitcoin has reclaimed crucial support levels including the $58,000 psychological level, where the 200-day exponential moving average (EMA). The quick reclamation of this level is crucial for the price as spending a lot of time below this level would suppress the price even further.
Accompanying Bitcoin’s performance today is the positive inflows into the spot Bitcoin ETF for the third day running. According to data from Farside Investors, the 11 spot bitcoin exchange-traded funds in the US saw $216.33 million in net inflows on July 9, extending the positive streak to a third day.
BlackRock’s IBIT, the largest spot bitcoin fund in terms of net asset value, led the pack of inflows with $121.03 million, followed by Fidelity’s FBTC, which recorded $90.95 million in net inflows. Ark Invest and 21Shares’ ARKB reported $43.3 million in inflows, while VanEck’s bitcoin fund also saw $3.27 million.
On the other hand, Grayscale’s GBTC saw outflows of $37.5 million. Bitwise’s BITB also reported net outflows of $4.72 million.
A total of $1.19 billion worth of value was traded on the 11 spot Bitcoin ETFs on July 10. The ETFs have accumulated a total net inflow of $15.27 billion since they began trading on Jan 11.
Bitcoin price recovery eyes a return to $72,000
The BTC price is nurturing a V-shaped recovery chart pattern on the daily chart, as shown below. The appearance of three consecutive candlesticks on the daily chart shows that bulls are taking control of the price.
The 200-day exponential moving average (EMA) at $58,194 is acting as immediate support for the pioneer cryptocurrency.
The relative strength index (RSI) is rising toward the 50-point mark, suggesting that the buyers were returning to the scene. As such, increased buying from the current levels will see the price rise to confront resistance from the $62,900 zone, embraced by both the 100-day and 50-day EMAs.
Higher than that, the price of the pioneer cryptocurrency could rise to confront resistance from the psychological level at $70,000. A daily candlestick close above this level could see Bitcoin rise to hit the neckline of the prevailing chart pattern at $72,000. Such a move would bring the total gains to 13%.
On the downside, the 50-day and the 100-day were about to send a sell signal on the daily chart. This may come in the form of a bearish cross that may take place once the 50-day EMA crosses below the 100-day EMA.
If this happens, the sellers may pull BTC price lower, with the 200-day EMA providing the first line of defense. Losing this support would see BTC drop to the chart’s bottom at $53,500 or lower to the $50,000 major support level.
