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bitcoin

Bitcoin Key Indicator Turns Bullish As Spot ETFs Record $2.1 Billion Weekly Inflow: New ATH Imminent?

Ash Tiwari
by Ash Tiwari
10 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A crucial momentum indicator for Bitcoin (BTC) has turned positive, as the premier cryptocurrency attracted more than $2.1 billion in spot exchange-traded fund (ETF) weekly net inflows.

New Bitcoin All-Time-High In Sight?

Bitcoin could be heading to a new all-time high (ATH) price, as the moving average convergence divergence (MACD) histogram has turned positive on the weekly chart for the first time since April 2024.

Related Reading: Bitcoin Bull Run To Resume Soon? Crypto Market Liquidity At Record Highs

For the uninitiated, the MACD histogram is a crucial momentum indicator widely used to gauge the future price of the underlying asset. The indicator helps traders identify shifts in momentum, with positive values suggesting upward momentum and negative values indicating downward momentum. 

The MACD is calculated by subtracting Bitcoin’s 26-week moving average from its 12-week average. Further, a signal line is created by averaging the MACD over nine weeks, and the difference between the MACD and the signal line is displayed as a histogram. 

Notably, the MACD histogram’s height reflects the trend’s strength, aiding in determining potential buy or sell points in the market. In the chart below, the MACD is sprouting after remaining in the red since April 2024.

Bitcoin MACD
BTC MACD has turned green on the weekly chart | Source: BTCUSDT on TradingView.com

In BTC’s context, the recent positive change in the MACD histogram indicates a growing buying interest in the market. It suggests that Bitcoin’s short-term price trend is gaining strength relative to its longer-term trend, signaling potential upward movement beyond its ATH value of $73,737 in March 2024.

The MACD turning bullish aligns well with other positive macroeconomic developments, including the US Federal Reserve’s (Fed) decision to slash key interest rates to stimulate business spending. Crypto analysts predict that further cuts in interest rates will give BTC the required ammunition to rally in Q4 2024.

Spot BTC ETFs Post $2.1 Billion In Weekly Net Inflows

Another factor painting a bullish picture for the leading digital asset is the return of strong positive weekly inflows into US-based spot BTC ETFs.

According to data from SoSoValue, total weekly net inflows in spot BTC ETFs for the week ending October 18 were $2.13 billion. This marks the highest total weekly net inflows since $2.6 billion in March 2024, when BTC made a new ATH of more than $73,000. 

Related Reading: Bitcoin In Danger Of Crashing To $55,000 – Here’s Why

As of October 18, the cumulative net inflow of US spot BTC ETFs stands at $20.94 billion, with total net assets of $66 billion, worth almost 4.9% of Bitcoin’s total market cap.

Since their approval by the US Securities and Exchange Commission (SEC) earlier this year, many institutional investors have gravitated toward Bitcoin ETFs.

Wall Street titan Morgan Stanley recently revealed it had $272 million in BTC ETF holdings, signifying about 2% of their total assets under management.

However, declining interest in Bitcoin – evident through low search volumes for Bitcoin keywords on Google – suggests that retail participants are still reluctant to invest in BTC due to its perceived volatility. BTC trades at $68,048 at press time, down 1.2% in the past 24 hours.

bitcoin
BTC trades at $68,048 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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