A crucial momentum indicator for bitcoin (btc) has turned positive as the leading cryptocurrency attracted more than $2.1 billion in weekly net inflows into spot exchange-traded funds (ETFs).
New bitcoin all-time high in sight?
bitcoin could be headed for a new all-time high (ATH) price as the Moving Average Convergence Divergence (MACD) histogram has turned positive on the weekly chart for the first time since April 2024.
For the uninitiated, the MACD histogram is a widely used crucial momentum indicator to measure the future price of the underlying asset. The indicator helps traders identify changes in momentum, where positive values suggest bullish momentum and negative values indicate bearish momentum.
The MACD is calculated by subtracting bitcoin's 26-week moving average from its 12-week average. Additionally, a signal line is created by averaging the MACD over nine weeks, and the difference between the MACD and the signal line is displayed as a histogram.
In particular, the height of the MACD histogram reflects the strength of the trend, which helps determine potential buy or sell points in the market. In the chart below, the MACD is rebounding after remaining in the red since April 2024.
In the context of btc, the recent positive change in the MACD histogram indicates increasing buying interest in the market. It suggests that bitcoin's short-term price trend is gaining strength relative to its long-term trend, indicating a possible bullish move beyond its ATH value of $73,737 in March 2024.
The MACD turning bullish aligns well with other positive macroeconomic developments, including the US Federal Reserve's (Fed) decision to cut key interest rates to stimulate business spending. crypto analysts predict that further interest rate cuts will give btc the ammunition needed to recover in the fourth quarter of 2024.
btc Spot ETFs Record $2.1 Billion in Weekly Net Inflows
Another factor painting a bullish picture for the leading digital asset is the return of strong positive weekly inflows into US-based btc spot ETFs.
According btc-spot” target=”_blank” rel=”noopener nofollow”>data According to SoSoValue, total weekly net inflows into spot btc ETFs for the week ending October 18 were $2.13 billion. This marks the highest total weekly net inflows since $2.6 billion in March 2024, when btc gained a new ATH of over $73,000.
As of October 18, the cumulative net inflow of US btc Spot ETFs stands at $20.94 billion, with total net assets of $66 billion, worth nearly 4.9% of capitalization of total bitcoin market.
Since his approval According to the US Securities and Exchange Commission (SEC) earlier this year, many institutional investors have gravitated towards bitcoin ETFs.
Wall Street titan Morgan Stanley recently revealed It had $272 million in btc ETF holdings, representing about 2% of its total assets under management.
However, declining The interest in bitcoin, evident through low search volumes for bitcoin keywords on Google, suggests that retail participants are still reluctant to invest in btc due to its perceived volatility. btc is trading at $68,048 at press time, down 1.2% in the last 24 hours.
Featured image from Unsplash.com, charts from TradingView.com
