Bitcoin ETF

Bitcoin

April

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) rose above the $70,000 mark for the first time in six weeks. Here’s why traders should have bought the Bitcoin dip below $70,000.
<h2 id="bitcoin-funding-rates-rise-to-six-week-highs">Bitcoin funding rates rise to six-week highs&nbsp;</h2>
Bitcoin rose to a six-week high of $71,401 on May 20, a price level not seen since April 9, according to <a href="https://www.tradingview.com/chart/3Z94myyP/?symbol=BITSTAMP%3ABTCUSD" target="_blank" rel="noopener nofollow">TradingView</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/a55bd2a0-4b0e-43c4-a868-ffdc81573e99.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT. 1-day chart. Source: TradingView
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</figure>
As Bitcoin recovered above the $70,000 psychological mark, the funding rate has also started rising. Bitcoin’s funding rate rose to 0.0187%, the highest level since April 9, according to <a href="https://www.coinglass.com/FundingRate" target="_blank" rel="noopener nofollow">Coinglass</a>, suggesting that most traders are long BTC.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/fbf07c86-9da5-424c-838c-1102ca1aef1f.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin perpetual futures average 8-hour funding rate. Source: Coinglass
 </figcaption>
</figure>
Essentially, a positive funding rate indicates a preference for leverage being used by traders assuming long Bitcoin positions (buyers).
Before Bitcoin’s rally to $70,000, funding rates have stayed below the 0.01% mark for the past month, suggesting that Bitcoin buyers are becoming more confident.
<h2 id="btc-price-technicals-favor-more-upside">BTC price technicals favor more upside</h2>
Fueling investor confidence, the four-hour Bitcoin chart recently printed an inverse head-and-shoulders pattern, which traders use to identify a trend reversal from bearish to bullish.
Bitcoin’s inverse head-and-shoulders pattern could signal more upward momentum, according to popular crypto analyst Moustache, who <a href="https://x.com/el_crypto_prof/status/1792822932366090266/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in a May 21 X post:
<blockquote data-ct-non-breakable="true">
 “I told you yesterday that we see a big green candle for $BTC. I hope you were listening? Never fade an inverse head and shoulders pattern. Altcoins will follow.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/4759c5ad-660b-48dc-911a-ff63fa789cf4.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD, inverse head and shoulders formation. Source: Moustache
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/bitcoin-etfs-decentralization-threat">Bitcoin ETFs are ‘orange FOMO poker chips’ that siphon on-chain funds back into TradFi</a>
<h2 data-ct-non-breakable="true" id="bitcoin-chart-fractal-mirrors-highs">Bitcoin chart fractal mirrors highs</h2>
Fractals refer to technical chart patterns that repeat on multiple timeframes and charts, regardless of how far traders zoom out on the underlying asset’s price action.
From a fractal analysis perspective, Bitcoin’s current rally on the weekly chart looks similar to its rally in November 2021, when BTC rose from $31,000 in July to $69,000 in November. 
If chart patterns were to repeat, Bitcoin could have more upside momentum in the coming weeks.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/6710919a-8bc6-4e66-87e6-1f72e2991911.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT. 1-week chart. Source: TradingView
 </figcaption>
</figure>
Moreover, Bitcoin’s price trajectory is also similar to the 2017 bull run, according to popular crypto analyst Jelle, who <a href="https://x.com/CryptoJelleNL/status/1792817530635174233/photo/1" target="_blank" rel="noopener nofollow">wrote</a> to his over 81,000 followers in a May 21 X post:
<blockquote data-ct-non-breakable="true">
 “Bitcoin continues to follow the same route as 2017’s bull run. Turbulent air around the previous cycle highs - but once we clear this pocket, smooth sailing.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/0eaf6d82-c8d2-446e-ace9-14940625e9b2.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD, 2017 compared to 2024. Source: Jelle
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="bitcoin-etf-flows-turn-positive">Bitcoin ETF flows turn positive</h2>
Additionally, institutional inflows into United States’ spot Bitcoin exchange-traded funds (ETFs) saw two consecutive weeks of positive inflows, after three weeks of net negative outflows.
The U.S. Bitcoin ETFs <a href="https://dune.com/hildobby/btc-etfs" target="_blank" rel="noopener nofollow">amassed</a> over $200 million worth of Bitcoin during the previous week and over $413 million during the week of May 6, according to Dune.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/47c8ef9c-6016-45bc-86f3-d754841c11de.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin ETF net flows, eekly. Source: Dune
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</figure>
On May 20, Bitcoin ETFs saw positive inflows worth over $235 million, more than the net inflows of the previous week, according to Farside Investors <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener nofollow">data</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/87574b0c-c511-4483-b008-39e120e7877b.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin ETF flow table. Source: Farside Investors
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</figure>
Institutional inflows from ETFs were a significant part of the current Bitcoin rally to new all-time highs. By Feb. 15, <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment">Bitcoin ETFs accounted for about 75%</a> of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.
Related: <a href="https://cointelegraph.com/news/ether-etfs-eth-price-10k-approval-2025">Ether ETFs could drive ETH price to $10K, but approval could take until 2025</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

4 reasons why Bitcoin was (and still is) a buy below $70K

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