Bitcoin Price Forecast: BTC rally tops $85,000 as ETF inflows fuel bullish momentum

Bitcoin price reclaims $85,000 on Monday, advancing last week’s 5% recovery toward an eight-month high. The recovery in King Crypto aligns with renewed institutional demand, with Exchange Traded Funds (ETFs) recording $433 million in inflows on Friday. 

The technical outlook for BTC is bullish, with Moving Average Convergence Divergence (MACD) crossing above its signal line, suggesting renewed upside pressure. Bitcoin could extend the recovery toward the $90,000 mark if the uptrend sustains. 

Institutional inflows back Bitcoin’s comeback

Bitcoin-focused ETFs recorded $433.03 million in inflows on Friday, flipping the weekly inflow to a net positive of $6.21 million. However, the monthly inflows stand at $313.63 million, significantly down from $3.52 billion in August. 

A potential recovery in daily inflows as the Bitcoin price rebounds could push the monthly total above $1 billion, indicating strong demand. An increase in ETF inflows reflects renewed institutional demand for BTC, typically lifting the spot market and starting a positive feedback loop. 

Silver lining in the failure of the CLARITY Act

CLARITY Act failed to advance to the US Senate floor for its cloture vote on Tuesday, which triggered a temporary long-liquidation sell-off. However, the US Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC) are pursuing different approaches, using available legal tools to regulate and structure the US crypto market.

The SEC granted an “Innovation Exemption” for trading tokenized stocks last week, while the CFTC submitted a proposal for Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets on Thursday, as previously reported by FXStreet.

A clear push from US financial regulators to establish a regime for the crypto market is boosting investor demand.

Technical outlook: Bitcoin rally targets $90,000 as bullish momentum builds

Bitcoin advances above $85,000 on Monday, extending its nearly 6% gains from Friday. The King Crypto maintains a bullish bias as it rises to an eight-month high, surpassing the $82,850 resistance set by the May 6 high.

The 50-day Exponential Moving Average (EMA) at $74,951 is well above the 200-day EMA at $73,489, strengthening the Golden Cross pattern, which signals a strong bullish reversal.

The Relative Strength Index (RSI) is at 71 on the daily chart, indicating that buying pressure is approaching overbought levels, which previously resulted in a pullback near 85. At the same time, the MACD line crosses above its signal line, hinting at a bullish crossover that could reaffirm dominant upside momentum.

Looking up, Bitcoin must confirm the $82,850 breakout with a decisive daily close, which could open the path toward the 78.6% Fibonacci retracement level, measured from $97,924 to $57,800 around $87,476. Beyond this, the previous swing high near the 100% retracement at $97,924 could act as a more distant cap if bulls extend the advance.

On the downside, initial support is seen at the 50% retracement at $75,233 and the 50-day EMA around $74,951, while the 200-day EMA at $73,489 reinforces the broader structural floor.

(The technical analysis of this story was written with the help of an AI tool. Know more.)