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Bitcoin price rose above the key resistance level of $64,000 today, July 11, as traders focused on the rising ETF inflows, stock market volatility, and the rising Crypto Fear and Greed Index. BTC has jumped by nearly 12% from its lowest level this year.
Bitcoin Price Rises as Spot BTC ETF Inflows Jump
There are signs that the tide is turning in the crypto industry. For one, American investors have started buying spot ETFs again. These ETFs added $197 million in assets this week, the first inflow since the first week of May.
Before that, the funds had shed billions of dollars worth of assets, possibly as investors rotated to the fast-growing stock market, where stocks like Micron, SanDisk, and Western Digital surged by triple digits.
The ongoing ETF inflows this week happened at a time when volatility in the stock market has jumped. For example, the Nasdaq 100 Index has dropped by over 3% from its highest point this year. The Roundhill Memory ETF (DRAM) has dropped by over 20% from its highest point this year.
Notably, the inflows were spread across the broader crypto ETF sector. Spot Ethereum ETFs added over $84 million in assets, while Solana funds had close to $1 million in inflows. HYPE’s ETFs added $10 million in assets this week.
Spot Bitcoin ETFs also added assets in a week where Michael Saylor’s Strategy started selling its Bitcoin holdings. In a statement on Monday, the company said that it unloaded Bitcoin ETFs worth over $200 million. His goal is to sell coins worth over $1.5 billion to build cash reserves that will help the company pay dividends.
Crypto Fear and Greed Index is Rising
A likely reason behind the ongoing Bitcoin price rise is that the closely-watched Crypto Fear and Greed Index has started going upwards. After bottoming at the extreme fear zone of 15, the index has jumped to the fear zone of 31, and is pointing upwards.
Historically, investors have taken the fear or the extreme fear zone as a good buying opportunity. For example, Bitcoin jumped from $60,0000 in February to over $80,000 after it moved to the extreme fear zone.
Still, Bitcoin’s recovery faces some major challenges ahead. One of the most notable one is the fact that there is a risk that the US and Iran war will resume now that President Donald Trump has declared his ceasefire to be over.
A resumption of the US-Iran war will lead to higher inflation in the United States, making it hard for the Federal Reserve to cut interest rates. Odds that the Fed will hike rates have jumped to over 50% on Polymarket.
The other risk is that more companies might decide to follow in Strategy’s footsteps and sell their coins. Indeed, a company known as Empery Digital decided to sell 1,400 coins in its strategy to become a major player in the AI industry. Other treasury companies like MARA, Riot, and Cipher may also dump because of their pivot to data centers.
Bitcoin Price Technical Analysis
Technicals points to a potential bullish breakout in the near term. That’s because Bitcoin has formed a falling wedge pattern, which is made up of two descending and converging trendlines. In most cases, this pattern normally leads to a bullish reversal.
Bitcoin has also jumped above the 50-day Exponential Moving Average (EMA) and the upper side of the falling wedge pattern. Also, the Relative Strength Index (RSI) has continued moving upwards.
Therefore, the most likely Bitcoin price forecast is bullish, with the next key target being at $67,400, its highest level in June this year. A move above that price will point to more gains towards $70,000.
