Bitcoin is trading above $60,000 for the first time in over two years following a wave of institutional demand. Following this encouraging uptick, one trader predicted a “mania” after the coin broke above the 7-week Supertrend.
This upswing signals a rapid shift in demand, a move that will likely propel the coin toward $70,000 or better in the days ahead.
Bitcoin Breaks Above The “Supertrend”
In a post on X, the trader shared a 7-week Bitcoin chart, showing the breakout above the “Supertrend.” The indicator marks regions of support and resistance. In the past, and as the trader points out, sharp price gains have followed breakouts above resistance levels of the super trend.
If past performances are a guide, the analyst is confident that the coin will now follow similar paths. As it is, Bitcoin is fast approaching its 2021 highs.
Traders are optimistic that prices will likely ease past this resistance level and print new highs. This preview is if the current deluge of capital to the world’s largest cryptocurrency remains.
So far, institutions, including Fidelity, BlackRock, and other spot Bitcoin exchange-traded funds (ETFs), have been buying the coin en masse on behalf of their clients.
As of February 27, Lookonchain data shows that Fidelity bought 4,460 BTC worth over $254 million. At the same time, BlackRock added 2,051 BTC worth over $116 million. Ark21 Shares bought 2,394 BTC worth over $139 million.
BTC Demand Skyrocketing
Since the approval of spot Bitcoin ETFs, the total amount of coins controlled via Wall Street players is 746,361 BTC. This haul includes those controlled by Grayscale Investment via its Grayscale Bitcoin Trust (GBTC).
The trust is being liquidated since the courts allowed Grayscale to convert GBTC into a spot ETF. However, in recent days, outflows from GBTC have been lower, a net positive for prices. The inflow outstrips supply, a development astounded Eric Balchunas, a senior ETF analyst at Bloomberg.
In a post, Balchunas speculates whether the inflow, which saw over $2 billion worth of spot Bitcoin ETF shares traded on February 27 alone, would continue or if it is a “short-term algo/arb-related burst.”
The spike in Bitcoin and altcoin valuation, including Ethereum, has seen the total market cap rally above $2.2 trillion for the first time since Q4 2021. Notably, Bitcoin continues to rally ahead of halving, an event that will further reduce circulating supply–making BTC more scarce.
Feature image from Canva, chart from TradingView
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