Bitcoin Approaches All-Time High Amid Strong ETF Inflows and Low Profit-Taking

Experts are noticing a drop in profit-taking as Bitcoin inches closer to its all-time high. Demand from U.S. ETF inflows is absorbing selling pressure. Technical analysis shows that Bitcoin has broken above trendline resistance, with a target set around $98,800.

Recently, Bitcoin (BTC/USD) briefly hit $89,864 during early European trading hours. This marked a significant rise of 6% in the past 24 hours before it stabilized around $87,600.

In a conversation with Benzinga, experts shared that limited selling pressure and strong demand could push the price even higher. This rally reflects Bitcoin's growing momentum as it approaches the $90,000 milestone.

Ethereum (ETH/USD) also saw a surge, reaching a peak of $3,424 before settling at $3,300, which is a 3% increase in just one day.

The rise in Bitcoin's price has brought some volatility, impacting both long and short traders. According to data from CoinGlass, this surge led to significant liquidations, totaling $975.53 million in the last 24 hours.

Breaking down the liquidations, long positions accounted for $513.40 million, while short positions faced losses of $462.12 million.

In a note to Benzinga, analysts from Bitfinex pointed out that even with Bitcoin hitting new highs, the volume of profit-taking remains low. Fresh demand is effectively absorbing minor selling pressure. They attributed this demand to strong inflows into U.S.-listed Bitcoin ETFs, which recorded a remarkable $2.28 billion in net inflows just three days after the recent U.S. presidential election.

Bitfinex analysts stated, “We seem to be entering a new phase where the volume of profit-taking when BTC reaches an all-time high is noticeably lower.” They highlighted that the ongoing price discovery process suggests a higher “fair value” for Bitcoin.

Market analyst Alex Kuptsikevich from FxPro noted that the total cryptocurrency market cap is nearing $3 trillion, a level not seen in three years. He explained that the current rally is driven by the liquidation of short positions across major cryptocurrencies, especially Bitcoin.

He observed, “The first cryptocurrency jumped nearly 10% in just 24 hours, coming close to $90,000, even though just a day before, it was trying to consolidate around $80,000.” This bullish momentum has raised expectations that Bitcoin might soon target the $100,000 to $110,000 range, potentially within weeks.

Katie Stockton, founder and managing partner of Fairlead Strategies, emphasized the significance of Bitcoin’s recent breakout. She noted, “Bitcoin confirmed its breakout above trendline resistance, resolving a seven-month corrective phase. This is a positive development.” She added that the breakout points to an aggressive target of about $98,800, based on Bitcoin's uptrend from August.

While Stockton remains optimistic about the intermediate term, she advised caution in the short term, suggesting a possible consolidation period due to signs of short-term exhaustion. She also mentioned that Ethereum appears ready for further gains, having recently cleared its 200-day moving average. This could push it toward $4,000, with initial support now around $2,780.

As Bitcoin and Ethereum approach these key psychological levels, these developments will be further explored at Benzinga's Future of Digital Assets event on November 19.