BTC Ended Five-Day Winning Streak on Profit-Taking
On Thursday, BTC declined by 2.54%. Partially reversing a 9.38% surge from Wednesday, BTC ended the session at $60,808. Despite the pullback, BTC avoided sub-$60,000 for the first time since November 2021.
BTC-spot ETF market net inflows for February 28 (Wednesday) rose to a record high of $673.4 million.
iShares Bitcoin Trust (IBIT) saw net inflows increase from $520.2 million on February 27 to $612.1 million on February 28. Significantly, IBIT held onto the number one spot, with Fidelity Wise Origin Bitcoin Fund (FBTC) seeing net inflows of $245.2 million, up from $126.0 million on February 27.
The record high net inflows came despite Grayscale Bitcoin Trust (GBTC) seeing net outflows of $216.4 million on February 28.
Monday through Wednesday, the BTC-spot ETF market saw total net inflows of $1,770.1 million. In the week ending February 16, total net inflows reached a weekly high of $2,271 million. Despite a spike in GBTC net outflows, upward net inflow trends paint a positive outlook for BTC.
Bloomberg Intelligence ETF Analyst James Seyffart reacted to the flows, saying,
“UPDATE: We have a new record inflow for the Cointucky Derby #Bitcoin ETFs! IBIT took in a record $612 million on its own. On a net basis, the group took in $673 million. This beats the day 1 record of $655 million. (still waiting on BTCO).”
However, BTC-spot ETF market flow data for February 29 painted a gloomier picture for the Friday session.
Grayscale Bitcoin Trust Sees Spike in Net Outflows
According to Farside Investors, GBTC saw net outflows of $599.0 million on February 29. Outflows were the second largest since the January 11 launch of the Nine. Based on the available BTC-spot ETF market flow data for February 29, IBIT would need to see another $500 plus in net inflows for the BTC-spot ETF market to avoid net outflows for the first time since February 21.
Banks Enter the Bitcoin-Spot ETF Market Fray
On Thursday, news hit the wires of two US banks offering BTC-spot ETFs to wealth management clients.
Bitcoin Price Forecast
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See all Bitcoin forecastsBloomberg reported Bank of America’s (BAC) Merrill Lynch and Wells Fargo (WFC) started offering BTC-spot ETFs to their clients. However, Vanguard remains on the sidelines. In January, Vanguard published a Q&A, saying crypto is more of a speculation than an investment.
Technical Analysis
Bitcoin Analysis
BTC remained well above the 50-day and 200-day EMAs, sending bullish price signals.
A BTC return to $62,000 would give the bulls a run at the Wednesday high of $64,008. A break above the Wednesday high of $64,008 would bring the all-time high of $69,276 into play.
BTC-spot ETF market flow data needs consideration.
However, a fall through the $59,176 support level would give the bears a run at the $57,000 support level.
The 14-Daily RSI reading, 79.42, shows BTC in overbought territory. Selling pressure may intensify at the Wednesday high of $64,008.
Ethereum Analysis
ETH sat well above the 50-day and 200-day EMAs, sending the bullish price signals.
An ETH break above the $3,412 resistance level and the Thursday high of $3,521 would bring the $3,683 resistance level into play.
ETH-spot ETF-related news needs consideration.
However, an ETH drop below the $3,300 handle would support a fall toward the $3,200 support level.
The 14-period Daily RSI, at 68.22, suggests that ETH could break above the $3,412 resistance level before reentering overbought territory.
