Bitcoin Price Surges: ETF Inflows, Solana ETF Application & Weaker Inflation Expectations
Cointelegraph•1 year ago•
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Bitcoin Price Surges: ETF Inflows, Solana ETF Application & Weaker Inflation Expectations

Bitcoin
Crypto
ETF
Markets
Inflation
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Summary:

  • Bitcoin (BTC) surged by approximately 1.5% in the past 24 hours, reaching $61,700.

  • Renewed inflows into Bitcoin exchange-traded funds (ETFs) signal a resurgence in risk appetite.

  • VanEck's new Solana ETF application adds further momentum to the crypto market.

  • Weaker inflation data expectations and potential Fed interest rate cuts are driving investor confidence.

  • Bitcoin is currently consolidating, forming a pennant pattern, which could lead to a bearish continuation.

  • A decisive break above resistance levels could invalidate the bear pennant and propel Bitcoin towards the 200-4H EMA, potentially reaching around $65,000.

Bitcoin (BTC) surged approximately 1.5% in the past 24 hours, reaching $61,700 on June 28. This upward trend is fueled by several factors, including renewed inflows into Bitcoin exchange-traded funds (ETFs), VanEck's new Solana ETF application, and weaker inflation data expectations.

Bitcoin ETFs See Resurgence: Following three consecutive days of inflows, U.S.-based Bitcoin ETFs have seen a renewed appetite for risk, signaling a potential shift in market sentiment.

VanEck's Solana ETF Application: VanEck's recent filing for a spot Solana ETF has added further momentum to the crypto market. With two pending crypto ETF applications with the SEC, VanEck is making a significant push into the U.S. crypto market.

Weaker Inflation Data Expectations: The anticipation of lower inflation readings, potentially allowing the Fed to cut interest rates in 2024, has positively impacted investors' risk appetite, leading to a boost in asset classes like crypto and stocks.

Bitcoin Consolidation and Pennant Pattern: While Bitcoin is currently experiencing a rally, it's essential to note that this is part of its ongoing consolidation trend, which is forming a pennant pattern. A break below the pennant's lower trendline could lead to a bearish continuation, with a potential downside target of $56,250.

Potential for Breakouts: A decisive break above the resistance levels, including the 50-4H exponential moving average (EMA) and the descending trendline, could invalidate the bear pennant and propel Bitcoin towards the 200-4H EMA, potentially reaching around $65,000.

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