Bitcoin (BTC) has surged past the $66,000 mark, boosting investor confidence by the end of bearish September. This upward movement has revived hopes that BTC could soon break through the $70,000 level in its Uptober rally, a level it hasn’t reached in nearly two months. Following a strong bearish period throughout September, Bitcoin’s recent recovery might trigger a short squeeze.
Bitcoin ETF Inflow Breaks Record After Two Months
The price of Bitcoin (BTC) has climbed to $66,000, its highest level since early August, driven by surging inflows into spot exchange-traded funds (ETFs). As Bitcoin touched a two-month high of $66,000 following the U.S. Federal Reserve’s recent interest rate cut, analysts believe a bullish start for the Uptober trend.
Despite September typically being a bearish month for Bitcoin, this year is set to mark its best performance ever for the month, with early signs of retail investor activity reappearing. The previous record for September gains was a 6% rally, achieved in 2016.
Also read: Bitcoin Price To Hit $70K in Next 2 Weeks – 10x Research
The recent rally in the BTC price appeared due to several factors. The U.S. central bank has indicated that further rate cuts are likely in the coming months, triggering investors to return to riskier assets like cryptocurrencies.
Additionally, on September 26, U.S. spot Bitcoin ETFs saw inflows of $365 million, marking one of their strongest days since their January launch. Over the past week, more than $600 million has flowed into spot Bitcoin ETFs, reflecting increased investor interest for crypto following a summer decline.
Recently, the Coinbase premium hit a two-week high as Bitcoin prices surged past the $66,000 mark. This premium, often viewed as an indicator of U.S. retail investor demand, signals growing buying pressure when surged. At the same time, the cumulative spot volume delta across all exchanges reached a new monthly peak, with net buying volumes dominating the market.
What’s Next For BTC Price?
Bitcoin has been facing robust buying demand for the past two days as sellers lose their confidence. This has resulted in a solid recovery above immediate Fib channels, pushing the BTC price above the $66K level. As of writing, BTC price trades at $66,325, surging over 1.2% in the last 24 hours.
The rising 20-day exponential moving average (EMA) at $65,466 and the relative strength index (RSI) in positive territory suggest that the path of least resistance remains upward. If buyers push the price above $66,700, the BTC/USDT pair could quickly rally toward $70,000. However, bears are expected to strongly defend the $70,000 to $73,777 zone.
To halt the upward momentum, bears will need to pull the price below the moving averages quickly. If successful, the pair may drop toward the support line at EMA200. This might plunge the BTC price toward the low of $60K to retest buyers’ patience.