Will Bitcoin Break $85,000? ETFs Attract $2.25 Billion

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

Bitcoin (BTC) is holding the $84,000 level, buoyed by institutional capital inflows, but with the strongest profit-taking signals in a year being detected, the possibility of a short-term correction before breaking $85,000 is growing.

According to investment specialized media FXStreet on September 25 (local time), Bitcoin has risen over 4% this week and is trading around $84,600. US spot Bitcoin ETFs saw a net inflow of $2.25 billion for the week through Thursday, marking the largest weekly inflow since October last year. Notably, the net inflow on Monday alone also hit its highest level since October last year, indicating that institutional demand is supporting Bitcoin's upward trend.

Corporate Bitcoin accumulation also continued. Strategy, a Bitcoin treasury strategy company led by Michael Saylor, purchased an additional 950 BTC on Monday, increasing its total holdings to 846,000 BTC. Additionally, Tuttle Capital Management and Strive Asset Management launched the 'T-Strive Digital Credit Preferred Income ETF (DCAP)', which invests in preferred securities of companies that hold Bitcoin as a core treasury asset. Although this product does not directly invest in Bitcoin, it demonstrates the market's trend towards financialization, as traditional financial products are expanding based on corporate Bitcoin holdings.

Bitcoin is also recording significantly higher growth rates than stocks and gold. According to Santiment, since August 18, Bitcoin has risen by 36%, while the S&P 500 index increased by only 0.8%, and gold decreased by 1.5%. During the same period, wallets holding 100-1,000 BTC accumulated an additional 113,950 BTC, increasing their total holdings by 2.22% to approximately 5.24 million BTC. Santiment explained that the continuous accumulation by these large holders shows that the recent rebound is not solely dependent on retail investor demand.

However, profit-taking due to the sharp rise is a concern. Bitcoin surged 6.7% on Monday to $87,395, reaching its highest level since late January, but subsequently fell to $82,874 by Thursday as selling pressure emerged. Notably, Santiment's Net Realized Profit/Loss (NPL) indicator soared to its highest level since December 12 last year on Monday. This indicates that holders are realizing significant profits, suggesting increased selling pressure after the recent rally.

Technically, breaking above the 365-day moving average, a long-term resistance level of approximately $80,300, is positive. Bitcoin is trading significantly above the $73,300-$76,500 range, where the 50-day, 100-day, and 200-day exponential moving averages (EMAs) converge. The Relative Strength Index (RSI) is at 65, maintaining a bullish trend without entering the overbought zone. The Moving Average Convergence Divergence (MACD) also remains in positive territory. In the short term, $85,000 is a key resistance level, and a decisive break above it opens the possibility of further gains beyond recent highs. Conversely, if a correction expands, the 50-day EMA at $76,473 is the first support level, followed by $73,956 and $73,309 as major defense lines.

*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.*