Bitcoin, the leading digital asset, has increased by 3% today due to a resurgence of optimism in the broader crypto market. This rally coincides with concerns over a potential US government shutdown, which has pressured the dollar and led to significant inflows into BTC over the past 24 hours.
As buy-side pressure intensifies, the king coin may be on the brink of reclaiming its all-time high.
BTC Inflows Surge as Dollar Weakens
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With the US dollar declining, global investors have begun to channel their capital into assets such as BTC. Recent data from SosoValue reveals that net inflows into spot BTC exchange-traded funds (ETFs) reached a multi-week high of $675.81 million yesterday, signaling increased institutional interest.
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This surge in inflows contrasts sharply with last week’s lackluster market, where over $900 million exited these funds.
The uptick in capital inflows hints at a potential resurgence in institutional demand for BTC, as market participants consider the duration of the US government shutdown and its broader implications for risk assets.
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If this trend continues, BTC could follow its historical pattern known as “Uptober,” positioning the asset to reclaim its all-time high and achieve new peaks.
Furthermore, data from Santiment indicates that the coin’s Weighted Sentiment is on the rise, reflecting a rejuvenated sense of trader confidence. Currently, it stands at 2.27 and is trending upwards.
Weighted Sentiment gauges discussions around an asset across social media and other platforms, measuring both the volume of mentions and the balance of positive versus negative comments.
A positive metric indicates general optimism among traders and investors, with bullish narratives prevailing in market discussions. Conversely, a negative reading reflects a dominance of bearish views, indicating caution or fear among participants.
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The recent increase in BTC’s weighted sentiment is noteworthy. For much of the past month, the metric fluctuated sharply, mirroring the volatility seen in the broader market.
The current steady rise suggests that optimism might be regaining momentum. If this trend continues, it could reinforce BTC’s ongoing rally.
Can the King Coin Break $120,000 Resistance?
On the daily chart, BTC’s Aroon Up Line has climbed back to 100%, a signal often associated with strong bullish trends.
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The Aroon indicator assesses the strength and direction of an asset’s trend based on the time since its recent highs (Aroon Up) and lows (Aroon Down).
When an asset’s Aroon Up Line approaches 100%, it indicates that its price is consistently achieving new highs, affirming the likelihood of a sustained uptrend.
If demand for BTC surges, it could revisit its all-time high of $123,731. However, this requires breaking the resistance at $120,144.
Conversely, should demand wane, BTC’s price might resume its decline, potentially falling below $115,892.
