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Bitcoin Poised for New Highs Amid Strong Fund Flows

Eric Lui 0

Over the past two weeks, Bitcoin has been trading within a remarkably narrow range around the $100,000 mark. Despite this consolidation, an analysis of fund flows suggests that Bitcoin is well-positioned to break through this key psychological barrier and potentially achieve new all-time highs in the near future.

Since the launch of the first wave of Bitcoin ETFs on U.S. exchanges on January 11 this year, investor interest has surged significantly. This trend has been particularly pronounced during the first and fourth quarters, with capital inflows into Bitcoin ETFs remaining robust. As of December 11, cumulative inflows into 12 Bitcoin ETFs have reached an impressive $46.5 billion — equivalent to the market capitalization of ETFs ranked among the 40 largest in the U.S.

A closer examination of fund flow patterns further underscores strong investor confidence. Following Bitcoin’s initial breach of the $95,000 threshold on November 21 and its subsequent approach to $100,000, there were only two trading days with net outflows. During this period, inflows into Bitcoin ETFs totaled nearly $9 billion, signaling that investors continue to actively accumulate positions despite elevated price levels.

From a technical standpoint, Bitcoin’s price action demonstrates a bullish trajectory, characterized by higher highs and higher lows. This pattern strengthens the case for an eventual breakout above $100,000. Once the spot price establishes a solid footing above this critical level, it is likely to gain additional momentum, driving further price appreciation.

#Bitcoin, #Crytocurrency, #FundFlow, #ETF, #TechnicalAnalysis

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