Bitcoin Price Forecast: BTC extends gains after third consecutive week of ETF inflows
- Bitcoin price extends gains on Monday after breaking above the upper consolidation range it had been trading since early February.
- US-listed spot ETFs recorded an inflow of over $760 million last week, marking the third consecutive week of positive flows.
- The technical outlook suggests an upside target above $78,000 following the confirmed bullish breakout.
Bitcoin (BTC) extends gains, trading above $73,000 at the time of writing on Monday, following a bullish breakout from the consolidation pattern it had been trading since roughly the past six weeks. Institutional demand supports the positive outlook, as spot Exchange Traded Funds (ETFs) recorded their third consecutive week of inflows despite markets being cautious due to the US-Israel war on Iran. With the breakout confirmed, the technical outlook suggests the Crypto King could hit the breakout target above $78,000 in the upcoming days.
Institutional demand remains robust
Institutional demand for Bitcoin remained strong last week, indicating growing investor confidence. According to SoSoValue data, spot Bitcoin ETFs recorded inflows of $767.33 million last week, following $568.45 million positive flows the previous one. This is the third consecutive week of inflows, and if these continue and intensify, BTC could see a rally in the upcoming weeks.
Bitcoin supply on exchanges falls to lowest level since 2017
The Santiment chart below shows that the percentage of Bitcoin on exchanges has dropped to its lowest level since November 2017, suggesting fewer coins are available for sale.
Generally, a falling exchange supply tends to support the bullish case for Bitcoin, as it signals reduced sell pressure. Any growing demand for BTC under these conditions can tighten the available market supply, potentially supporting higher prices.
Bitcoin Price Forecast: BTC bulls aiming for the $78,000 target
Bitcoin price is trading above $73,000 as of writing on Monday after surging over 10% in the previous week. The near-term tone turns cautiously bullish as price breaks above the parallel channel whose upper boundary sat near $72,600, signalling a challenge to the recent sequence of lower highs. This upside break unfolds as BTC pushes further above the 50-day Exponential Moving Average (EMA) around $72,800.
The Relative Strength Index (RSI) on the daily chart at 59 shows firm positive momentum without overbought conditions, and the Moving Average Convergence Divergence (MACD) line is holding above the signal line in positive territory, with a still-positive histogram, reinforcing the building upside pressure after the prior consolidation.
Initial support now aligns near the former channel top around $72,600, where a pullback would test the validity of the breakout, followed by a deeper cushion around $70,900, the last swing low before the latest thrust higher. Below that area, $68,800 emerges as stronger daily support, guarding the lower boundary of the previous range and the lower end of recent high-volume trade.
On the topside, the technical target for the channel breakout is above $78,000, based on the channel’s distance. With a sustained close above this area, opening the way to near $80,000, it’s the 100-day EMA. A daily hold above $72,600 would keep the bullish bias intact, while a failure back inside the channel would reintroduce a more neutral, range-bound outlook.
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(The technical analysis of this story was written with the help of an AI tool.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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