Bitcoin (CRYPTO: BTC) has moved higher and moved above the crucial resistance level of $65,000 as American investors continued their accumulation. BTC has risen from this month’s low of $62,148.
Bitcoin ETF Inflows Despite CLARITY Act Setback
American investors continued buying Bitcoin ETFs, a sign that they expect the price will continue doing well in the near term.
Spot Bitcoin ETFs recorded more than $98 million in inflows on Friday, bringing their total weekly inflows to $857 million. The strong buying marked a sharp reversal from the previous week, when the funds saw more than $61 million in outflows. They also attracted $172 million in inflows last month, with BlackRock’s IBIT remaining the largest spot Bitcoin ETF by assets.
Bitcoin ETFs added inflows as investors embraced a risk-on sentiment after the US halted its planned attacks against Iran. As a result, crude oil prices dropped, while the stock market bounced back.
This price action continued after the US published a weak non-farm payrolls (NFP) report, which showed that the economy shed 23k jobs last month. Analysts were expecting the economy to add over 85k jobs during the month. These numbers mean that the Federal Reserve will likely not hike interest rates this year.
Bitcoin rose slightly after the CLARITY Act suffered a major setback despite the industry spending $225 million lobbying for it. US senators will go to a recess before voting for the bill, lowering chances that it will become law.
In a statement, Majority Leader John Thune said that the bill will be voted in September, setting up another round of lobbying by the industry and banks. A major hindrance is that senators are yet to agree on ethical rules that would force Trump to divest from his crypto businesses.
Bitcoin Price Technicals Show the Rebound is Losing Momentum
BTC coin has remained below the important resistance level of $67,000, its highest level in June and July this year. It has formed a double-top pattern, and is below the descending trendline that links the highest point in January and May this year.
The Average Directional Index (ADX) has plunged to 11, its lowest level since July last year, a sign that the rebound is losing momentum. Therefore, there is a possibility that the coin will remain under pressure in the near term. If this happens, the next key level to watch will be at $60,000.
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