Bitcoin (BTC) price has rebounded by 28% from its five-month low below $75,000 reached on April 9. However, its failure to break above the $95,000 resistance level decisively has sparked concerns that the latest recovery may trap bulls.
Bitcoin ETF flows provide a “more solid foundation”
But another big crash may be averted as BTC price momentum is backed by elevated spot Bitcoin ETF inflows in recent days.
This provides Bitcoin a “more solid foundation” to surge forward, according to market intelligence firm Glassnode.
As Bitcoin edged above $95,000, its 14-day price momentum indicator rose sharply from 58.7 to 82.1, as shown in the chart below.
“This breakout pushed the momentum above the statistical high band, a rare occurrence that historically signals strong bullish momentum,” Glassnode said in its latest Weekly Market Pulse report.
This indicator last crossed the statistical high band in November 2024, preceding a 61% rally in Bitcoin’s price to new all-time highs.
Bitcoin bull flag hints at $108,000
Bitcoin technicals show it remains within a bull flag pattern, which puts it in a good position to break out if key support levels hold.
The flagpole pattern developed after price climbed from $84,000 to a seven-week high of $95,857 between March 3 and April 25.