BTC Price Forecast: Bullish Momentum Builds as ETF Inflows and Fed Cut Drive Gains

Bitcoin Eyes $65K After Five-Day Rally Amid ETF Inflows

On Saturday, September 21, BTC advanced by 0.25%, following a 0.50% gain from the previous session, closing at $63,384. Significantly, BTC closed at its highest level since August 25 while underperforming the broader crypto market, which advanced by 0.95%, taking the total market cap to $2.172 trillion.

Supply-Demand Trends Push BTC Toward $65,000

On Friday, September 20, the US BTC-spot ETF market reported net inflows of $92.0 million, following inflows of $158.3 million from the previous session. According to Farside Investors,

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $26.1 million (previous day: +$49.9).
• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $22.0 million (previous day: +$81.1 million).
• Bitwise Bitcoin ETF (BITB) reported net inflows of $15.1 million (previous day: +$10.4 million).

Significantly, the US BTC-spot ETF market had net inflows for six out of seven sessions, reflecting an improving BTC demand environment.

MicroStrategy Bets on BTC Amid Favorable Economic Outlook

Over the last two weeks, MicroStrategy (MSTR) acquired 25,720 BTC for more than $1.5 billion, taking its total BTC stockpile to 252,220. The two acquisitions coincided with the upswing in demand for BTC-spot ETFs, driving expectations of BTC return to $70,000.

MicroStrategy founder and chairman Michael Saylor shared a chart comparing its performance with Bitcoin, the Magnificent 7, and the S&P 500. The chart showed MicroStrategy outperforming BTC, the Mag 7, the S&P 500, and all the companies listed on the S&P 500.

The BTC purchases came at a crucial time for BTC and the broader crypto market. On Wednesday, the US Federal Reserve cut interest rates by 50 basis points while signaling a soft US economic landing. A dovish Fed rate path and hopes of the US avoiding a US recession could boost demand for riskier assets, including BTC.

SEC Approves Options on iShares Bitcoin Trust

On Friday, September 20, the SEC approved options trading on iShares Bitcoin Trust (IBIT), adding to the positive momentum going into the weekend.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas announced the approval, stating,

“OPTIONS APPROVED: SEC has just granted accelerated approval for the listing and trading of options on IBIT.”

The approval of options could be significant for BTC, as options could draw more institutional investors into BTC, a positive outcome for the supply-demand trend.

Investors should remain alert, with upcoming US economic indicators likely to affect buyer demand for BTC and the broader market. Stay updated with our latest news and analysis to manage your BTC and crypto exposures.

Technical Analysis

Bitcoin Analysis

BTC hovers well above the 50-day and 200-day EMAs, affirming bullish price signals.

A break above the $64,000 resistance level could support a move toward $67,500. A return to $67,500 could give the bulls a run at the $69,000 resistance level.

Investors should consider US economic indicators for the week ahead, which include consumer confidence, services sector PMIs, and inflation data.

Conversely, a break below the $60,365 support level could indicate a fall toward the 50-day and 200-day EMAs. A drop below the EMAs would signal a bullish trend reversal, possibly bringing $55,000 into play.

With a 61.27 14-day RSI reading, BTC may return to $65,000 before entering overbought territory.

Ethereum Analysis

ETH hovers above the 50-day EMA while remaining below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.

An ETH break above the $2,664 resistance level could support a move toward the 200-day EMA. Furthermore, a breakout from the 200-day EMA may bring the $3,033 resistance level into play.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH drop below the 50-day EMA could signal a fall toward the $2,403 support level.

The 14-period Daily RSI reading, 58.05, suggests an ETH return to $2,800 before entering overbought territory.