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A recent unexpected move by Bitcoin completely changed the mood of the market almost immediately. In one of the biggest one-day turnarounds in recent weeks, spot Bitcoin ETFs saw a whopping $422 million in net inflows on May 1. BlackRock's IBIT led the charge with $351 million, demonstrating that institutional confidence is still very much alive and well despite subdued flows from last week.
The technical performance of Bitcoin is in line with this ETF-driven surge. Bitcoin is currently trading at about $96,681, above all three of the major moving averages: the 50 EMA, 100 EMA and 200 EMA. As a structurally bullish stance, this supports the notion that the most recent decline was a shakeout rather than the start of a complete reversal. Now that the Relative Strength Index (RSI) is getting close to 70, it is showing increasing momentum but also placing Bitcoin on the verge of overbought conditions.
Crucially, the asset is currently moving in a vacuum; with no nearby resistance levels to stop its advance, if momentum continues, the $100,000 mark will be within reach. The change in ETF sentiment is what gives this move its special significance. Concern over diminishing institutional interest grew as the market experienced negative flows just the day before. With more than $420 million in net inflows, Bitcoin is currently experiencing a new tailwind that may keep prices stable well into May.
In the coming 30 days, Bitcoin may surpass the $100,000 psychological barrier if ETF inflows continue at this rate. Volume should be used with caution because it is still quite low for spot exchanges, which may indicate some underlying fragility. But the path of least resistance is unmistakably upward, with no technical resistance until six figures and ETF demand burning again. In summary, the $420 million Bitcoin just made indicate that this rally may be just beginning.
Vladislav Sopov
Dan Burgin