Hassan Maishera
TL;DR
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Bitcoin has gained more than 6% this week and was trading near $86,408 on Wednesday.
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US spot Bitcoin ETFs attracted $714.75 million on Tuesday after recording $998.95 million in inflows on Monday.
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BTC’s market capitalization has increased 36% since August 18, outperforming the S&P 500 and gold.
Bitcoin (BTC) extended its rally above $86,000 on Wednesday, supported by consecutive days of strong inflows into US spot exchange-traded funds and improving institutional demand.
The cryptocurrency has gained more than 6% since the beginning of the week and is now trading comfortably above several major moving averages.
Bitcoin has also outperformed US equities and gold since mid-August, suggesting that crypto-specific catalysts are playing a greater role in its recovery.
Although momentum remains firmly bullish, rising leverage and an overbought technical reading warn that the market could experience a short-term shakeout before attempting a move toward $100,000.
Bitcoin ETFs Attract $1.71 Billion in Two Days
US spot Bitcoin ETFs recorded $714.75 million in net inflows on Tuesday, according to SoSoValue. The positive result followed $998.95 million in inflows during the previous session, bringing the combined two-day total to approximately $1.71 billion.
Tuesday marked the fourth consecutive trading day of positive ETF flows, highlighting sustained demand from investors seeking regulated exposure to Bitcoin.
Continued inflows can provide direct support for BTC because fund issuers typically purchase bitcoin to correspond with new investments. Several days of strong demand may therefore tighten available supply and reinforce upward price momentum.
The current streak carries more weight than an isolated day of buying, but traders will still need to watch whether inflows persist as Bitcoin approaches higher prices. A reversal into net outflows could weaken one of the main forces behind the rally.
Institutional participation has helped Bitcoin overcome an important long-term technical barrier. BTC recently closed above its 365-day moving average, which currently sits near $80,500.
Holding above that level suggests the market’s broader direction is improving. Renewed spot buying and positive ETF flows provide additional confirmation that the breakout is supported by capital entering the market rather than derivatives activity alone.
Bitcoin Outperforms the S&P 500 and Gold
Bitcoin has also separated itself from the performance of traditional assets during the past five weeks.
According to Santiment, BTC’s market capitalization has increased 36% since August 18. Over the same period, the S&P 500 gained only 0.8%, while gold declined 1.5%.
The divergence suggests Bitcoin is no longer moving solely in response to equity-market trends. Instead, catalysts specific to the cryptocurrency market—including ETF demand, improving liquidity and repeated short squeezes—have played a more important role.
Santiment said the breakout began after smaller holders controlling between 0.1 BTC and 10 BTC capitulated in mid-August. Selling by weaker holders may have allowed larger or more confident investors to accumulate at lower prices before the recovery accelerated.
Liquidity conditions have also improved since the US Treasury doubled the size of its long-duration bond buybacks beginning in September. Meanwhile, bearish traders were forced to repurchase Bitcoin as it broke through resistance, adding further pressure to the upside.
The contrast with traditional assets has become increasingly visible. Stocks remain close to record highs but face pressure from elevated bond yields and uneven market participation. Gold has weakened as investors price in the possibility that monetary policy will remain tighter for longer.
Bitcoin could continue outperforming if ETF inflows, market liquidity and institutional participation remain strong. However, increasing leverage and excessive bullish sentiment raise the possibility of a sharp correction if momentum suddenly reverses.
Bitcoin Holds Above Key Moving Averages
Bitcoin was trading around $86,408 on Wednesday, firmly above its major exponential moving averages.
The 50-day EMA stands at approximately $75,883, while the 200-day EMA is near $73,763 and the 100-day EMA sits around $72,891. BTC’s position above all three indicators confirms that the short- and longer-term technical structure currently favors buyers.
The recent breakout also established immediate support around $85,000, a level that previously acted as horizontal resistance. Holding above this former barrier would show that buyers are defending the breakout and could support another attempt to extend the rally.
Bitcoin’s Moving Average Convergence Divergence indicator remains positive, reinforcing the view that bullish momentum is intact.
The Relative Strength Index presents a more cautious signal. Its reading near 72 places Bitcoin in overbought territory, generally defined as an RSI above 70. That does not guarantee an immediate decline, but it indicates the rally is becoming stretched and may need to consolidate.
Can Bitcoin Reach $100,000?
Bitcoin currently has little nearby overhead resistance on the referenced chart, leaving the $100,000 psychological threshold as the next major upside objective.
A sustained move above the latest high, supported by continued ETF inflows and spot-market demand, could allow BTC to advance toward that level. The bullish scenario depends first on the price holding above $85,000.
If that support fails, the 50-day EMA near $75,883 would become the next important level. Below it, the 200-day EMA at $73,763 and the 100-day EMA at $72,891 form a broader support zone.
A deeper correction could bring the former structural levels at $66,500 and $62,300 back into focus. Those areas may attract buyers, but a decline of that scale would substantially weaken the immediate bullish setup.
For now, institutional inflows, Bitcoin’s improving performance against traditional assets, and its position above major moving averages keep bulls in control. The principal short-term risk is that overbought conditions and rising leverage trigger profit-taking before the market reaches $100,000.
