On March 16, the price of the leading cryptocurrency broke through resistance, reaching $74,450. The market received support from capital inflows into spot ETFs.
As of this writing, Bitcoin is trading near $73,740, up 3.2% over the past 24 hours. This positive momentum was bolstered by leading altcoins: Ethereum rose 7.8% to $2,266, XRP gained 5% to $1.48, and Solana increased 6.1% to $93.63.
Source: CoinGecko.
One of the drivers behind the market's recovery has been the influx of capital into crypto funds. From March 9 to 13, net inflows into spot Bitcoin ETFs totaled $767 million. This positive trend in the sector has persisted for three consecutive weeks.
Source: SoSoValue.
Spot instruments based on Ethereum also continued their positive streak, attracting $160.82 million in net investments. Funds based on Solana gained $10.7 million. Meanwhile, investors withdrew $28.07 million from XRP-based exchange products.
Despite this, overall market sentiment remains pessimistic, with the cryptocurrency sentiment index at 23, indicating a phase of "extreme fear."
Source: Alternative.
Andri Fauzan Adziima, head of research at Bitrue, linked the price surge to short liquidations and institutional activity amid historically low coin supply following the halving.
He emphasized that the market has risen despite geopolitical tensions between the U.S. and Iran. With oil trading near $98 per barrel due to threats of closure of the Strait of Hormuz, Bitcoin is successfully reaffirming its status as "digital gold" and a safe-haven asset.
Adziima described the current price movement as a rebound from a local low of $60,000. For a full-scale rally, the market needs a new catalyst. If the inflow of funds into ETFs continues, prices could reach $80,000. The main support for this week is between $70,000 and $71,000. A breakout of the $73,000-$74,000 range would accelerate further growth.
Dominic John, an analyst at Zeus Research, added that surpassing the $75,000 mark would create conditions for a stronger bullish trend.
Min Yun from Presto Research advised traders to focus on macroeconomic data and the actions of large corporations. He believes that transactions like the recent purchase of 17,994 BTC by Strategy serve as a fundamental support for the entire market.
As a reminder, in March, analysts at Santiment pointed out a positive signal for digital gold.