Bitcoin's price hits $64,000 with record spot ETF inflows, causing crypto liquidations. Market cap reaches $1.23 billion. Analysts note potential resistance levels and short-term indicators.

Bitcoin experienced a brief surge surpassing $64,000 on February 28 before retracing towards the $62,000 range. This upward movement coincided with record volumes in spot Bitcoin exchange-traded funds (ETFs) and a notable increase in crypto liquidations.

As of 3:35 pm UTC, the leading cryptocurrency was trading at $62,669, marking a 5% increase over the past 24 hours.

The recent rally resulted in a remarkable 93% spike in Bitcoin's daily trading volume, reaching $90.2 billion. With a market capitalization of $1.23 billion, Bitcoin solidified its position as the most valuable cryptocurrency, according to the CoinMarketCap ranking table.

This surge in Bitcoin's price is primarily attributed to the growing inflows into new spot Bitcoin ETFs.

Record Inflows into U.S. Spot Bitcoin ETFs

Capital continues to flow into spot Bitcoin ETFs, with a record $673 million in net inflows on February 28 as BTC surpassed $64,000. Data from Farside Investors indicates that these figures exceeded the previous high of $655.2 million set on January 11 during the commencement of trading.

Among the contributors, BlackRock's iShares Bitcoin Trust led with approximately $6.12 million in inflows, its highest recorded amount. The Fidelity Wise Origin Bitcoin Fund followed with around $245.2 million, and the ARK 21Shares Bitcoin ETF secured the third position with $23.8 million. However, the Grayscale Bitcoin Trust experienced outflows totaling $216.4 million on February 28.

Additional data from BitMEX Research reveals that the nine new Bitcoin ETFs accumulated net inflows of about $7.4 billion, marking the highest since their launch.

Bloomberg ETF analyst Eric Balchunas remarked on the rapid cash inflow into $IBIT, stating, "Only one or two other ETFs on the planet are taking in cash as fast as $IBIT right now."

Bitcoin Price Volatility Triggers Crypto Liquidations

The volatility in Bitcoin's price resulted in substantial liquidations of leveraged positions across the crypto market. During the early Asian trading hours on February 29, with the price around $63,500, short positions worth $435 million were liquidated over the last 24 hours, compared to $364 million in long liquidations, as per Coinglass data.

As the New York trading session commenced with prices around $62,500, a total of $683 million, comprising $341 million in longs and $341 million in shorts, were liquidated within 24 hours.

Approximately $143 million of Bitcoin shorts were liquidated in the last 24 hours against $102 million in long positions.

The most substantial single liquidation order occurred on OKX for the BTC/USDT SWAP, valued at $9.35 million.

With increasing inflows into spot Bitcoin ETFs and the approaching supply halving event, investors anticipate continued bullish price action for Bitcoin.

Bitcoin Faces "Literally No Resistance" to the Upside

Independent analyst Ali shared IntoTheBlock's In/Out of the Money Around Price (IOMAP) chart on X, emphasizing that Bitcoin's price encounters "literally no resistance ahead."

The IOMAP chart indicates a significant support zone between $54,300 and $56,200, where approximately 903,540 addresses previously purchased nearly 500,000 BTC.

There is literally no resistance ahead of #Bitcoin. All we see is a major support wall between $54,300 and $56,200 where 903,540 addresses bought nearly 500,000 $BTC. pic.twitter.com/ZMeVkWyS4A

The IOMAP chart reveals that approximately 89.75% are currently in the money versus 9.24% out of it, indicating a relatively small percentage that could resist attempts to push the price lower.

The weekly chart illustrates that the described support level previously served as a solid bounce level for BTC in 2021, leading to a swing high at $64,500 and later reaching all-time highs at $69,000 on November 10 of that year.

The relative strength index's (RSI) position at 85 and the upward-facing moving averages confirm the dominance of buyers in the market.

However, Ali cautioned short-term traders that the TD Sequential indicator signaled a sell on the four-hour chart. If confirmed, this may result in "$BTC price corrections between 1.50% and 4.20%," as observed in previous instances.

The TD Sequential flashes a sell signal on the #Bitcoin 4-hour chart! Since Feb 15, every sell signal from this indicator has been spot-on, leading to $BTC price corrections between 1.50% and 4.20%. This is a pattern worth noting for traders eyeing short-term movements! pic.twitter.com/TQhSG78WF3

It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.