Bitcoin breaks through $77,000…5 consecutive days of spot fund net inflows

▲ Bitcoin (BTC) Exchange Traded Fund (ETF) ©Coinreaders

A massive short squeeze (buying pressure generated to liquidate or cover short positions), fueled by favorable macroeconomic conditions and fierce buying from institutional investors, has exploded, pushing the leading cryptocurrency past $77,000 in an instant and heating up the market.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 22 (local time), Bitcoin (BTC) rose 2.47% over the past 24 hours to reach $77,592.13. This figure surpasses the average rise of 2.01% for the entire virtual asset market and shows a high correlation of 81% with the US S&P 500 index, indicating movements thoroughly synchronized with macroeconomic trends.

The most powerful driving force behind this rally is the continuous influx of funds into spot Exchange Traded Funds (ETFs). As of April 20, an additional $238.37 million flowed in, extending the net inflow streak to five consecutive days. This consistent buying pressure from institutional capital directly absorbs the available supply in the market, acting as a strong support base that drives price increases.

The easing of geopolitical tensions and a cascade of liquidations in the derivatives market also contributed to maximizing the gains. News of a ceasefire agreement between Iran and Pakistan significantly improved overall investor sentiment towards risk assets. Furthermore, open interest increased by 6.77%, and $50.47 million worth of short positions were forcibly liquidated, with a derivatives market-driven short squeeze (buying pressure generated to liquidate or cover short positions) igniting bullish momentum.

The short-term market direction hinges on whether Bitcoin can definitively break through the key resistance level it recently formed at $78,320. A successful breakout above this zone could extend the rally to $81,951, corresponding to the 127.2% Fibonacci extension. Conversely, if bullish momentum weakens and the critical support level at $75,170 (the 23.6% retracement line) breaks, there is a risk of a retreat to $73,220.

Ultimately, the current uptrend is the inevitable result of a combination of insatiable demand for exchange-traded funds and a favorable macroeconomic environment. With institutional buying continuously supplying upward fuel, whether Bitcoin breaks through short-term resistance levels will be a crucial turning point in determining entry into a future major bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*