Bitcoin [BTC] has once again surpassed the 67,000 USD mark, attracting the attention of traders and institutions to key support levels that could play a pivotal role in the current price rally.
One of those levels is the medium cost of Bitcoin Spot ETFs, excluding Grayscale's (GBTC).
Throughout 2024, this price level has emerged as a significant support, providing stability during periods of high volatility.
Despite some minor dips, Bitcoin has maintained a steady recovery, highlighting the strength of Spot ETF investors, who have remained steadfast in their positions even as the market has corrected.
The 57,000 USD level, representing the medium cost of Bitcoin Spot ETFs, has proven to be a crucial support point throughout the past year.
It has only been challenged twice – during the sell-off on August 5 and the strong correction on September 6.
However, instead of panicked selling, Spot ETF investors have remained calm and steadfast, only experiencing a slight capital outflow.
This demonstrates a strong belief in the long-term potential of Bitcoin, as investors have not shown signs of abandoning their positions despite temporary losses.
Inflows into BTC Spot ETFs and OI
This resilience has helped solidify the 57,000 USD level as a foundation for the price rally, with the emergence of Bitcoin Spot ETFs providing a safe haven for institutional investors, further bolstering market confidence.
The combination of traditional financial products with Bitcoin has opened the door to wider acceptance.
In just the past three trading days, Bitcoin Spot ETFs have recorded inflows exceeding 1 billion USD, indicating that institutional investors are actively accumulating BTC at an unprecedented pace.
In addition to the growing influence of Spot ETFs, the Open Interest (OI) in Bitcoin Futures Contracts has reached a new high, particularly on Binance, with OI soaring to 40 billion USD.
This reflects the stable optimistic sentiment of traders, who are eager to buy despite the price increase. This strong demand could reduce the available supply, driving BTC prices higher.
The Open Interest of Futures Contracts on other exchanges, such as Bybit and OKX, has also reached new highs, further supporting the likelihood of Bitcoin maintaining the 57,000 USD level during this price rally.
Whale Transactions
Another key factor for the 57,000 USD support level is the recent increase in whale transactions.
Over the past 10 weeks, transactions of whales (100,000 USD or more) have surged, with 11,697 transactions recorded.
This increased activity indicates that large investors are aggressively buying Bitcoin, further bolstering confidence in the upward market trend.
Furthermore, Bitcoin is dominating social media conversations, accounting for more than a quarter of all discussions related to cryptocurrencies.
Although the price may experience short-term adjustments, the medium and long-term indicators remain highly optimistic, further reinforcing the likelihood of BTC being maintained above the 57,000 USD support level during the current growth phase.
