Bitcoin Touches 94-Day High...ETF Inflows and Derivatives Bets Explode Simultaneously

▲ Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) has climbed to a 94-day high, fueling expectations of a rally, with ETF inflows and expanded derivatives positions emerging as key factors supporting the possibility of breaking through $87,000.

According to cryptocurrency media outlet Coingape on May 6 (local time), Bitcoin rose above $81,900 on Tuesday, recording its strongest price point in 94 days. The recent 24-hour increase was 1.42%, and the weekly increase was 6%. The total cryptocurrency market capitalization also reached approximately $2.71 trillion within 24 hours, with Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE), Toncoin (TON), WIF, and Zcash (ZEC) also showing strength alongside Bitcoin's rise.

Market sentiment improved amid easing tensions in the Middle East and expectations of interest rate cuts by the U.S. Federal Reserve. Crypto analyst Ali noted that a bullish Moving Average Convergence Divergence (MACD) signal formed on the weekly chart, and similar past crossovers signaled long bull runs. He stated that Bitcoin has already risen over 15% since a bullish crossover appeared on the weekly chart on April 13.

Ali presented $83,000, where the 200-day moving average is located, as an important observation zone. He believes that if Bitcoin forms a strong daily close above this price level, it could rise to $89,000, with a further possibility of heading towards the $94,000 zone. Coingape reported that Bitcoin's open interest reached a 109-day high, indicating the largest expansion in derivatives positions in over three months.

Investors also realized significant profits during the rebound. Coingape reported that Bitcoin investors realized profits close to 14,600 BTC during this trading period, marking the largest profit-taking day since December last year. Long-term holders capitalized on the recovery to secure profits as the price approached resistance levels.

Inflows into U.S. spot Bitcoin ETFs also supported the upward trend. On May 4, net inflows into U.S. spot Bitcoin ETFs exceeded $530 million, and institutional demand continued for three consecutive trading days. During the same period, $61.29 million was newly injected into U.S. spot Ethereum ETFs.

At the technical price level, the $83,000 resistance line was identified as a short-term hurdle. Analysis suggests that if Bitcoin surpasses $84,000, the upward momentum could continue towards the $85,500 target, and stronger buying pressure could test the $87,000 resistance zone. Conversely, if it falls below the ascending channel, the $80,000 support level could be re-tested in the next correction phase, Coingape reported.

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