Bitcoin Price Eyes $80,000 Liquidity Grab as ETFs Resume Buying BTC

Bitcoin (BTC) tapped $70,000 during Wednesday’s New York session as bulls targeted sell liquidity.

Key takeaways:

• BTC price support must hold above a key trendline at $68,000 for the rebound to continue.

• $80,000 is a key level to watch as the next big liquidation cluster above.

• Spot Bitcoin ETF inflows attracted half a billion dollars in inflows on Wednesday.

Bitcoin must close week above $68,000

Data from TradingView showed the BTC/USD pair at $68,480 on Bitstamp. This is just above the 200-week exponential moving average (EMA), which is currently at $68,338.

Related: Bitcoin tops $69.5K after stocks rebound, strong earnings data boost risk appetite

Analyst Rekt Capital spotted Bitcoin facing resistance from this trendline, saying that the latest recovery could turn into a “post-breakdown retest of the EMA into new resistance” based on historical price action.

“The moment of truth is coming for Bitcoin,” Rekt Capital said, adding:

Zooming in, fellow analyst Jelle said that the price needs to turn the 50 EMA (at $68,000) on the four-hour chart into support to confirm the recovery.

As Cointelegraph reported, the BTC/USD pair may rally to $74,508, where sellers are likely to step in, if the 20-day EMA, currently at $69,220, is broken by the bulls.

Will liquidations drive BTC price to $80,000?

Several traders are anticipating a possible liquidity grab where a cluster of ask-orders are placed above $72,000.

The latest data from monitoring resource CoinGlass showed BTC price tapping the liquidity around $70,000, with the bulk of interest still clustered above the spot price.

About $2 billion in ask orders are sitting between $72,450 and $75,000.

If the $75,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $80,000, the next major liquidity cluster.

“Bitcoin’s liquidity hunt has only just started,” analyst AlphaBTC said in his latest post on X, adding:

Spot Bitcoin ETF inflows support BTC’s upside

Institutional demand is showing signs of a comeback, with US-based spot Bitcoin ETFs recording inflows for two consecutive days, according to data from Farside Investors.

Investors poured a total of $765 million into these investment products on Tuesday and Wednesday, with $507 million flowing into the funds Wednesday, the largest since Feb. 2.

“ETF inflows and short liquidations doing the heavy lifting,” X user Raster said in a recent post, adding:

This growing demand-side pressure could push BTC prices higher, particularly if combined with growing adoption and whale accumulation.