Crypto Price Prediction 4/5: Record Inflows into ETFs Fuel Fresh Recovery in Bitcoin

Crypto Price Prediction

The cryptocurrency market has witnessed a renewed buying interest since Thursday following the Bitcoin price reversal from $56,500. The bullish turnaround has uplifted the BTC price to $63,169, registering a 6% increase since yesterday. The altcoin market also experienced significant gains, with top assets Ethereum (ETH) and Solana (SOL) increasing by 4% in the last 24 hours. Toncoin (TON) and Avalanche (AVAX) saw jumps of 5-7% while leading meme coins Dogecoin and Shiba Inu posted double-digit gains.

The buying momentum can be attributed to the lack of follow-up from the $60,000 support breakdown and notable inflow from spot BTC ETF.

On May 3, 2024, the Bitcoin ETF market witnessed a significant influx, with a net inflow of $343 million after seven days of declines, according to SpotOnChain. The Grayscale Bitcoin Trust (GBTC) recorded its first-ever single-day inflow of $63.0112 million. Leading the inflows, Fidelity Wise Origin Bitcoin Fund attracted $102.6 million, while BlackRock iShares Bitcoin Trust saw a more modest $13 million. This uptick could indicate renewed investor confidence or strategic buying within the Bitcoin ETF sector.

🚨 $BTC #ETF Net Inflow May 3, 2024: +$343M!
• #Grayscale Bitcoin Trust $GBTC experienced the first single-day inflow since its inception.
• The net inflow turned positive after being negative for 7 consecutive trading days.
• 8/10 #BitcoinETFs experienced inflows, led by… pic.twitter.com/PsJUMyeHPy
— Spot On Chain (@spotonchain) May 4, 2024

With the relief rally gaining momentum for sustainable recovery, potential buyers can hunt for new long opportunities at top assets like Ethereum (ETH), Cardano (ADA), and Shiba Inu (SHIB).

1) Ethereum (ETH)

Ethereum (ETH) is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). With a market cap of $373.5 billion, Ethereum stands as the second-largest cryptocurrency.

Over the past three weeks, the Ether price traded entirely sideways resonating within two horizontal levels of $3282 and $2870. Amid the renewed buying interest in the broader market, the ETH price rebounded 11.9% from the aforementioned low to currently settle at $3149.

With a modest drop of 3.5%, the 24-hour trading volume is wavering at $11.9 billion, indicating the asset is yet to pick sufficient bullish momentum. Thus, for buyers to regain better control over this coin, they need to escape the range of the wedge pattern (market with two blue trendlines).

A successful breakout will intensify the ETH price potential to rechallenge the $4090 top.

2) Cardano (ADA)

Cardano (ADA) is a blockchain platform designed for sustainability and scalability through a research-driven approach. The prevailing correction trend in ADA price has found a suitable bottom at the $0.42 support.

A bullish turnaround from this floor has uplifted the altcoin value by 13.5% in four days to currently trade at $0.47. As per the coinmarketcap, the market cap of Cardano surged to $18.9 billion, while the 24-hour trading volume is recorded as $293.5 million.

An analysis of the daily chart shows the recent upswing as the formation of a bullish reversal pattern called Double Bottom. Under the influence of this pattern, the Cardano price is likely to breach the swing high resistance of $0.52, marking an initiated change in the market dynamic.

The post-breakout rally could allow buyers to chase a potential target of $0.62, followed by $0.684 and $0.81.

3) Shiba Inu (SHIB)

Shiba Inu (SHIB) is a meme cryptocurrency that originated as a playful alternative to Dogecoin, leveraging the same Shiba Inu dog breed as its mascot. In the last three weeks, the SHIB price has showcased strong sustainability above $0.000002, with the assistance of a $100-day EMA slope.