Bitcoin must close above $62,000 to reignite bullish momentum

Gino Matos

Aug. 20, 2024

After rising nearly 4% in 24 hours, Bitcoin has daily and weekly challenges to resume its bullish trend.

Bitcoin must close above $62,000 to reignite bullish momentum

Key Takeaways

Bitcoin needs to close above $62,000 to maintain bullish momentum.
US spot Bitcoin ETFs saw $62 million in net inflows on August 19.

Bitcoin (BTC) has risen nearly 4% over the last 24 hours, registering a daily close above the downtrend line that has been keeping its price down for the past few days. According to the trader identified as Rekt Capital, now it should close the day above $62,000 to keep upward momentum.

“Bitcoin is only one Daily Close above the Local Highs (orange circle) from turning it all around,” he added.

Moreover, Bitcoin has also breached the downtrend channel that has been forming since Aug. 8, adding to the short-term bullish momentum.

Rekt Capital also mentions a weekly challenge for Bitcoin, which is closing above the downtrend channel bottom in the $58,600 region. Moreover, another weekly challenge is turning the $60,600 price level into support, something that could set BTC to reclaim its “post-halving re-accumulation range.”

“Of course, Bitcoin still has almost an entire week before the necessary weekly close above $60600 is in. Currently, price is a little bit above that at $60,900.”

Bitcoin ETFs start the week with inflows

The week started with positive net flows for spot Bitcoin exchange-traded funds (ETFs) in the US, with their assets under management (AUM) growing by $62 million on Aug. 19, according to Farside Investors’ data.

BlackRock’s IBIT was the major force driving the significant inflows by registering a nearly $93 million increase in AUM. Notably, Grayscale’s GBTC did not show any outflows yesterday, which helped the positive outcome.

However, Bitwise’s BITB experienced $25.7 million in fleeting capital on the same day, despite the asset manager announcing on the same day the ETC Group, a London-based crypto exchange-traded product (ETP) issuer with over $1 billion in assets under management.

The movement is part of a European expansion by Bitwise, but it didn’t help to prevent the outflows. Invesco Galaxy’s BTCO also bled $8.8 million in AUM yesterday, diminishing positive net flows for the day.

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