Bitcoin traders aim for price surge after $494M inflow

Bitcoin (CRYPTO:BTC) is approaching a potential reversal of a six-month downtrend, with traders eyeing new price highs as the cryptocurrency nears a critical monthly close.

A close above $65,000 on both the weekly and monthly charts would signal a higher high and break the trend of lower highs, according to recent market analysis.

In recent weeks, fresh bullish catalysts have emerged, leading to renewed optimism among Bitcoin traders.

A significant factor has been the surge in spot Bitcoin ETF inflows, which totaled $494 million.

This brings the cumulative inflows to $18.8 billion, sparking positive sentiment in the market.

Additionally, MicroStrategy announced substantial Bitcoin purchases, acquiring 18,300 BTC between August 6 and September 12, followed by another 7,420 BTC on September 20.

Traders are also closely watching global economic trends.

The People’s Bank of China (PBOC) recently announced rate cuts, while data shows an expected expansion in global and U.S. money supply due to central bank policy changes.

According to market participants, these developments could incentivize investors to seek higher yields in Bitcoin, as interest rate cuts may lower returns on traditional investment instruments.

Technically, Bitcoin has posted three consecutive daily closes above the 200-day moving average and surpassed a 196-day descending trendline.

A close above $65,000 would mark a key price level, potentially setting the stage for Bitcoin to test new all-time highs.

While pullbacks to $62,000 could occur in the short term, traders are focused on whether Bitcoin can break through the resistance zone between $66,000 and $68,000.

At the time of reporting, the Bitcoin price was $65,325.62.