Market Wrap: Will Bitcoin Reach $65K with ETF Inflows Surging?

• Bitcoin price forecast indicates a potential rise to $65,000.
• U.S. spot Bitcoin ETFs saw positive inflows totaling $39.02 million.
• Ethereum experienced net outflows of $20.14 million for the second consecutive day.

The price of Bitcoin is on an upward trajectory, increasing by 10.57% over the past week. Various macroeconomic factors have introduced volatility impacting the broader cryptocurrency market. However, positive non-farm payroll data has largely offset the disappointing PMI data released last Friday. Market participants are now looking forward to the FOMC interest rate decision set for September 18. If certain criteria are met on the daily timeframe chart, BTC price appears to have potential for further gains.

U.S. Bitcoin ETF Inflows Trigger Price Increase

On September 12, the U.S. spot Bitcoin ETFs reported positive inflows of $39.02 million, signaling a turnaround from previous low volumes. Meanwhile, Ethereum faced net outflows of $20.14 million, with several ETFs reporting zero net flow.

The recent inflows indicate that the average cost basis for ETF investors—used for tax calculations—is $62,000 while Bitcoin trades around $58,000, suggesting that most ETF investors are currently at a loss. According to Soso Value, the cumulative net inflow to Bitcoin ETFs has reached $17 billion. The increase in ETF inflows, together with institutional accumulation and historical trends, leads analysts to believe that Bitcoin is gearing up for a major upward movement.

Current BTC Price Statistics

Previous Bitcoin Price Insights

In the previous week’s market summary, it was noted that Bitcoin traders with open long positions were potentially facing a liquidity squeeze near the demand zone. The Bitcoin price dipped to a low of $52,550 before major players stepped in, elevating the price.

The latest U.S. non-farm payroll (NFP) figures were better than the July numbers but below the anticipated forecasts. Overall, unemployment in the U.S. has declined, and jobs have increased.

Reacting to this news, the price of Bitcoin surged and returned to its previous range.

Current BTC price movements are revealing a significant chart pattern that, if validated, could evolve into a bullish reversal, setting the stage for Bitcoin to reach $65,000.

This Formation Forecasts a $65,000 Bitcoin Price

Market makers have strategically absorbed liquidity from both ends of the spectrum, leading the price back up within the range, implying ongoing activity.

An inverted head and shoulders (H&S) pattern is in formation with a target price vicinity of $65,000. This requires a breakout above the current consolidation area near $62,000. Could this suggest another liquidity search could be underway?

If so, it may be wise for investors to stay on the sidelines as Bitcoin approaches the $62,000 mark until the price resumes its prior range.

A decisive rise above the H&S neckline at $59,500 could trigger a rally to the top end of the range. A possible run up to $65,000 could occur in the context of a subsequent liquidity search before retracting back into the previous range.

Nonetheless, a clear breakout above $65,000 with solid volume could kickstart a significant rally that potentially surpasses previous all-time highs. Meeting this criterion could validate a new price discovery phase, with a 27% Fibonacci extension suggesting the first take-profit level at around $90,000.

DISCLAIMER: The analysis presented in this article is based on current developments, technical charts, company announcements, and the author’s views. It may include inaccuracies, and readers should not base investment decisions solely on this content.