Bitcoin (BTC) is showing signs of life on Wednesday afternoon as the top crypto is climbing higher, with bulls targeting resistance at $43,600, which has stifled every breakout attempt since January 12.
BTC/USD Chart by TradingView
The building momentum comes as inflows into spot Bitcoin ETFs continue to climb while the outflows from Grayscale’s GBTC decrease in magnitude by the day.
According to Bloomberg Intelligence senior ETF analyst Eric Balchunas, the first holder reported for BlackRock’s IBIT ETF is a Canadian asset manager named Redwood, which “sold the local Purpose Bitcoin ETF which is >1% fee and bought the US-based $IBIT which is free till first $5b and 25bps thereafter.”
“Great cost migration hitting crypto funds,” Balchunas said.
IBIT has emerged as the preferred Bitcoin ETF for investors to this point and now ranks in the top 5 of all U.S. listed ETFs in terms of year-to-date inflows, “which means it's taken in more cash than 99.98% of ETFs,” Balchunas said. “Not bad for 17 days old.”
According to long-time chartist and author Peter Brandt, the recent choppy price action and flash price dumps for Bitcoin may be a sign that a parabolic price rise is approaching.
Brandt previously noted the choppy price action, referring to it as “The old ‘Hump with a Slump then a Pump and a Dump,’” which he said “separates Chumps from their money.”
But on Wednesday, he tweeted the following image, saying the choppy price action “Is all about confusing the chump.”
“Is history repeating itself?” Brandt questioned. “As Yogi Berra once said, ‘It's like deja vu all over again.’”
As seen in the above image, the “BHLD analog pattern” for Bitcoin has some of the hallmarks of the recent price action for BTC, which suggests that another leg higher could soon happen.
According to market analyst Rekt Capital, Brandt may be on to something as the pre-halving period, when Bitcoin typically sees a significant pullback, ends in one week.
#BTC
Time is running out
The Pre-Halving period (orange) where pullbacks tend to occur is ending in one week
Only one week left for any additional downside before the Pre-Halving rally period begins (light blue)$BTC #Crypto #Bitcoin pic.twitter.com/w0LWDx4sC0— Rekt Capital (@rektcapital) February 6, 2024
At the time of writing, Bitcoin trades at $43,540, an increase of 1.2% on the 24-hour chart.
