Bitcoin Holds Near $121K With ETF Inflows Suggesting Potential Breakout
Bitcoin (BTC) is trading between $121,000 and $123,000 after reaching a new high near $126,000. U.S. spot Bitcoin ETFs have seen eight consecutive days of net inflows, adding significant capital and pushing total ETF assets towards $160 billion.
- ETFs draw more BTC than miners produce, reducing free float and preventing deep pullbacks.
- BTC serves as a portfolio diversifier and inflation hedge amid dollar volatility and macro uncertainty.
Technical Levels for BTC
The current resistance is at $125,000–$126,000. A daily close above could lead to $128,000–$130,000. Key support stands at $117,000, with potential further decline to $114,000. Momentum indicators suggest consolidation:
- Spot market strength over derivatives indicates cleaner advances.
- Positive ETF inflows support price on dips.
- Breaking above $126,000 on higher volume would confirm bullish momentum.
Scarcity and Institutional Demand
Bitcoin’s issuance post-halving is 450 BTC/day, but institutional demand via ETFs creates a supply deficit. This accumulation pattern often leads to extended trends. With the dollar weakening, inflation persisting, and policy uncertainties, assets like BTC remain appealing.
- If $117,000 support holds and $125,000–$126,000 breaks on high volume, a move toward $130,000 in Q4 is plausible.