Bitcoin Hits 8-Month High… '$90,000' in Sight as ETFs See $433.03 Million Inflow

▲ Bitcoin (BTC) Exchange Traded Fund (ETF) ©CoinReaders

Bitcoin (BTC) has surged to an 8-month high, breaking past $85,000. With $433.03 million flowing into Bitcoin spot ETFs, combined with a golden cross and a bullish turn in the Moving Average Convergence Divergence (MACD) indicator, the market's attention is now on $90,000.

According to investment specialized media FXStreet on Monday, September 21 (local time), Bitcoin rose by approximately 5% on Monday, surpassing $85,000. The increase since last Friday totals about 6%. Data from SoSoValue shows that Bitcoin spot ETFs saw a net inflow of $433.03 million on Friday, turning the weekly cumulative flow into a net inflow of $6.21 million. However, the monthly net inflow for September was $313.63 million, significantly less than August's $3.52 billion.

Changes in the regulatory environment also supported investor sentiment. While the U.S. cryptocurrency market structure bill, the Clarity Act, failed to pass a cloture vote in the Senate last Tuesday, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have begun working on establishing separate cryptocurrency regulatory frameworks using their existing legal authority. The SEC granted an 'innovation exemption' for tokenized stock transactions last week, and the CFTC also submitted proposed regulations concerning cryptocurrency transactions and markets on Thursday. FXStreet analyzed that these moves by regulatory authorities acted as factors driving up investment demand.

Technically, bullish signals have also become clear. BTC surpassed the $82,850 resistance level formed at the high on May 6, reaching an 8-month high. The 50-day Exponential Moving Average (EMA) at $74,951 is above the 200-day EMA at $73,489, strengthening the golden cross pattern. The Moving Average Convergence Divergence (MACD) also showed a bullish crossover signal by breaking above its signal line.

However, the possibility of short-term overheating is a cautionary factor. The daily Relative Strength Index (RSI) has risen to 71, approaching the overbought territory. For further gains, it is crucial to confirm the breakout of $82,850 on a daily closing basis, after which the 78.6% Fibonacci retracement level of $87,476 is presented as the next resistance. If the uptrend continues, $90,000 becomes a major target, and further out, the previous high of $97,924 could act as resistance.

Conversely, if a correction occurs, the 50% Fibonacci retracement level of $75,233 is considered the first major support. The 50-day EMA at $74,951 and the 200-day EMA at $73,489 also form a lower support zone. FXStreet analyzed that the recovery in ETF inflows, the golden cross, and the bullish MACD crossover are supporting the current upward momentum, and if this trend continues, Bitcoin could extend its rally towards $90,000.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*