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Bitcoin Tops $119.5K, Traders See Pullback as ETF Inflows Hit $1.6B

  • Bitcoin’s price indicators show it may have reached a short-term peak near $119,500, suggesting a possible pullback.
  • Traders anticipate a support level retest as part of a recent 10% price rally.
  • Exchange-traded fund (ETF) inflows reached $1.6 billion in the past three days.
  • BlackRock’s iShares Bitcoin Trust (IBIT) moved into the top 20 U.S. ETFs by asset value.
  • Overbought signals on popular price metrics point to a pause before Bitcoin continues its upward trend.

Bitcoin saw a significant rally over the past week, with its price approaching $119,500 on Thursday, according to Cointelegraph Markets Pro data. Technical indicators now signal that the cryptocurrency may be due for a short-term price dip and a retest of support levels before moving higher.

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The relative strength index (RSI), a tool used to measure if an asset is overbought or oversold, reached nearly 90 out of 100 on the four-hour chart. Levels this high often suggest a possible reversal as Bitcoin’s latest rebound approached a 10% gain within the week. Trader Roman stated in an X post, “Everything is overbought but no signs of initial weakness. Simple breakout & retest.”

On the longer daily and weekly charts, the RSI has stayed “overbought” during previous final stages of bullish markets. Roman added, “Volume, rsi, & macd look good for continuation to 124k over next few days.”

On the investment side, U.S. spot Bitcoin ETFs saw net inflows of more than $1.6 billion this week, based on data from Farside Investors. The iShares Bitcoin Trust (IBIT) alone added $600 million. IBIT also entered the top 20 U.S. ETFs ranked by assets, according to Eric Balchunas of Bloomberg Intelligence. He noted on X that if growth continues, IBIT could move even higher in the rankings over the coming years.

These developments suggest continued institutional interest in Bitcoin, though technical signals point to a possible short-term pause or correction. Investors are advised to monitor market conditions and conduct their own research before making trading decisions.

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