Although Bitcoin's price fell more than 2% this week, it has since rebounded from a significant technical level on the weekly chart, suggesting that a new all-time high may be within reach in the near future.
Even if there has been an uptick in profit-taking, US spot Bitcoin ETFs have still received $596 million up to Thursday.
The cryptocurrency markets next week may be influenced by predictions for the US presidential election.
After three days of drop earlier in the week, Bitcoin (BTC) found support around the $66,000 mark on Wednesday. On Friday, it trades slightly lower at approximately $67,500. Despite a 2% drop in value so far this week, the technical picture remains optimistic for Bitcoin and predicts a new short-term high of $78,900.
The increasing demand from institutions, as seen by ETF inflows of almost $500 million this week, lends credence to this positive prognosis. In the near future, the US presidential election on November 5 may be a major factor in the cryptocurrency market, according to some experts; on the other hand, some analysts point out that the increasing interest in digital assets among institutional investors may spur price increases for Bitcoin.
Bitcoin price rise slows as investors cash out
On Monday, Bitcoin prices fell as the bulls, who had ended last week on a positive note, were worn out. Based on Santiment's Network Realized Profit/Loss (NPL) data, Bitcoin lost more than 2.4% as some investors cashed out.
Between Saturday and Sunday, the non-performing loan indicator for Bitcoin surged from 348.87 million to 1.64 billion. This increase suggests that, generally speaking, the holders were cashing in.
Institutional investors took advantage of the drop in Bitcoin price on Monday. According to statistics compiled by Coinglass, US spot ETFs had a net inflow of $297.60 million, with $332.30 million coming from funds managed by BlackRock (IBIT).
As institutional demand for Bitcoin fell little on Tuesday, the cryptocurrency leveled out at about $67,000. After seven days of inflows, ETFs had a little outflow of $87.90 million, according to statistics from Coinglass.
On Wednesday, the price of bitcoin fell once again, this time hitting a daily low of $65,260 and going below $66,000. According to Santiment's Network Realized Profit/Loss, some holders have recorded gains again. Between 307.17 million and 456.81 million, the nonperforming loan indicator surged on that day. Coinglass ETF inflow data shows that institutional investors accumulated $198.50 million after buying Bitcoin dips on Wednesday, when its price fell.
Supported by inflows in Spot ETF, which posted a $187.58 million on Thursday, Bitcoin regained 2.29% after finding support around the $66,000 mark.
According to Glassnode's weekly report, a more complete picture emerges. It states that Open Interest (OI) in futures contracts, including both perpetual and fixed-term contracts, hit a new ATH of $32.9 billion this week, indicating a significant rise in aggregate leverage entering the market.
"The dominance of the CME Group exchange highlights an increasing presence of institutional investors in the digital asset space, which strongly indicates that a cash-and-carry strategy is in play," the paper adds.
Presidential race in the United States becomes a focal point
On Tuesday, QCP Capital released a research outlining the potential effects of the US elections on November 5 on the cryptocurrency market.
There will be no winners in the equity market regardless of the election because it sets up a zero-sum situation. The research claims that if stocks take a tumble, investors would move their money to cryptocurrency since both contenders are more crypto-friendly than the last government.
Until the election results are known, the biggest factor influencing cryptocurrency values might be the uncertainty surrounding the outcome. In almost every "swing state," where the next president will be chosen, polls indicate that former president Trump and vice president Kamala Harris are neck and neck.
The Republican candidate still has a 64% lead over Harris's 36% in the betting totals at Polymarket.
Weekly research predicts new all-time high for Bitcoin at $78,955
The most valuable cryptocurrency by market value, Bitcoin, retested its breakout level at $67,500 last week after breaking above a downward-sloping parallel channel pattern, according to the cryptocurrency's weekly chart.
The pattern is created by joining two trendlines (beginning in early March and continuing through October) with several weekly closures.The bulls will benefit from a breakthrough and subsequent retest of this pattern if the price closes the week above the breakout level.
An updated all-time high (ATH) of $78,955 is projected by the pattern's technical goal, which is derived by calculating the distance between the two trendlines and projecting it higher.
Bullish momentum is gathering steam, according to the Relative Strength Index (RSI) momentum indicator on the weekly chart, which is now trading at 57, which is above its neutral threshold of 50 but still far below overbought circumstances.
Finding support at the $66,000 mark on Wednesday after three straight days of fall earlier in the week, the daily chart also shows hints of recovery. As of this writing on Friday, it is trading at a little discount, at $67,500.
It may rise to recapture Monday's high of $69,519 if the $66,000 level remains supportive. If $70,000 is broken and closed above, the rally may continue to retest its next important hurdle, the all-time high of $73,777, which was reached in mid-March.
Following a rebound from Wednesday's neutral level of 50, the relative strength index (RSI) on the daily chart now reads 59, suggesting that the upward momentum is starting to take hold.
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