BTC price recovers amid weakening bearish sentiment and ETF inflows
Bitcoin (BTC) cryptocurrency has strengthened its position once again after bearish sentiment subsided and ETF inflows increased. According to analyst Markus Thielen, the price of the world's leading digital currency continues to fluctuate around its 21-week moving average (SMA), but technical factors and news are increasingly influencing its price. Positive news surrounding trade talks between the US and China has become an additional driver of momentum.
In a report published a week ago, on October 20, Thielen noted that the Fear and Greed Index had fallen to levels that historically coincided with market recovery phases. He argued that this indicates a shift in sentiment and the emergence of conditions for a bullish scenario. At the same time, technical indicators are showing signs of a reversal after a protracted correction, and the decline in volatility is strengthening the sustainability of short-term growth.
The chart shows that since August 2024, BTC's price dynamics have closely correlated with the stochastic indicator, which reached a local minimum and began moving upward. This behavior traditionally accompanies the early stages of recovery, when cautious optimism persists in the market. Its rise to levels above $100,000 may require additional support from institutional investors.
The analyst paid special attention to changes in the options market, where negative expectations are gradually fading. According to him, a significant portion of bearish bets have already been eliminated, reducing the risk of sharp sell-offs.
Against this backdrop, participants' interest is shifting to the potential impact of new ETF inflows, which could support the market's positive momentum. Thielen emphasized that it is premature to talk about an imminent renewal of all-time highs. The key factor remains the sustainability of capital inflows into spot ETFs, which could consolidate the positive trend. If investor activity continues, the market will receive the necessary liquidity to continue its growth.
Source: cryptonews.net
