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Bitcoin is flashing significant bullish signals across both on-chain metrics and institutional investment products.
This could set the stage for a much-awaited run at a major psychological resistance level.
According to top on-chain analyst Willy Woo, $80,000 would be the critical test level for the flagship cryptocurrency.
Capital flows turning positive
According to Woo, capital flows into Bitcoin have finally flipped positive for the first time since January.
The market is finally healing from the catastrophic deleveraging event that occurred late last year.
"Liquidity is repairing," Woo explained. "Spot remains stable while derivatives, after being destroyed 10 Oct, is now making their second attempt at rebounding."
He has concluded that $80,000 remains the "key test level" for Bitcoin's next major leg up.
Strong institutional flows
After a period of sluggish momentum, the spot Bitcoin ETF market just recorded a blockbuster week of inflows.
According to data compiled by Farside Investors, Bitcoin ETFs raked in a massive $816.9 million in total net flows over the past week. Unsurprisingly, BlackRock’s iShares Bitcoin Trust (IBIT) did the heavy lifting, accounting for $612.1 million of that total.
Bloomberg Senior ETF Analyst Eric Balchunas has noted that it has completely wiped out previous deficits. "Another solid week for the bitcoin ETFs, they are now officially positive in YTD flows," Balchunas posted. He praised the resilience of traditional institutional investors despite Bitcoin's recently "upwardly challenged price."
Bitcoin recenlty experienced a multi-week uptrend. A sequence of strong green candles pushed the asset steadily higher, culminating in a test of the $73,000 resistance level by April 11.
The momentum was interrupted on April 12, with the price plummeting down to the $70,500 range. At press time, the flagship coin is changing hands above the $72,000 level.
With capital flows turning positive, ETF buyers accumulating heavily, and spot buyers immediately front-running price dips, Willy Woo's $80,000 test level may soon become a reality.
Dan Burgin
U.Today Editorial Team
