Bitcoin poised to end 7-month decline as Bitcoin ETFs reach record $65B milestone

Bitcoin is approaching a critical weekly close as bulls aim to break a seven-month downtrend.

Data from TradingView shows BTC making another attempt to breach resistance that has held firm since March’s all-time high. For over half a year, Bitcoin has been consolidating within a downward-sloping channel after hitting its record price of $73,800.

Despite multiple efforts to push higher and reenter price discovery mode, BTC/USD has remained trapped in this range. However, traders are now hopeful that the current conditions signal a potential breakout.

Looking at the weekly chart, trader and analyst Rekt Capital noted that Bitcoin has repeatedly tested the upper boundary of the channel, with the latest attempt happening this week.

“Bitcoin has once again faced rejection from the top of the Downtrending Channel (marked in red), similar to previous occasions (highlighted by blue circles),” he explained.

“To avoid a more significant rejection, it’s crucial for Bitcoin to secure a Weekly Close above the red resistance level.”

A close above the channel’s top, which is around $68,000, is within reach, with buyers maintaining pressure and giving bears little room to act.

“We’re still early in the week,” Rekt Capital added.

“We need to monitor how this Downtrending Channel resistance (in red) reacts and see if it shows signs of weakening compared to previous rejections.”

On shorter timeframes, the outlook is more optimistic, as Bitcoin has already managed to secure daily closes outside the channel.

“With the recent move, Bitcoin has finally broken out of the channel it has been stuck in for most of 2024,” fellow trader and analyst Daan Crypto Trades shared with followers on X.

His accompanying chart demonstrated that BTC/USD has cleared both the 200-day simple moving average (SMA) and the exponential moving average (EMA) cloud — a significant achievement after facing challenges since summer.

“Short-to-mid-term trends are now pointing upward,” Daan Crypto Trades added.

Bitcoin institutional demand eyes records

The demand for Bitcoin from institutional investors is climbing to record levels, driven by even minor price movements.

Recent days have seen a continuation of this trend, with rising BTC prices sparking increased capital inflows from investors.

“Bitcoin investment products worldwide have seen net yearly inflows of 360,000 BTC, and they are on track to break the 2020 record set by Grayscale, which stood at 373,000 BTC,” Vetle Lunde, senior analyst at crypto analytics firm K33 Research, stated on Oct. 18.

In the U.S., net flows into spot Bitcoin exchange-traded funds (ETFs) have surged past $20 billion, while total assets under management have reached a new peak of $65 billion.

“For perspective, it took gold ETFs around five years to reach the same figure,” commented Eric Balchunas, a senior ETF analyst at Bloomberg, referring to the $20 billion milestone.

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