How high can Bitcoin go? BTC eyes $83,000 as ETF inflows fuel its latest rally

Bitcoin was trading around the low-$81,000 range on September 20, after recovering strongly from levels below $76,000 last week. The immediate question for traders is whether BTC can break through the $82,000-$83,000 resistance zone. Bitcoin had repeatedly struggled to move above this area, making it an important level for the current rally. The latest rebound has brought Bitcoin back near the resistance zone.

Bitcoin has already recovered the important $80,000 psychological level. The next major test is between $82,000 and $83,000. If Bitcoin can break and stay above this range, the next possible target area could be around $85,000-$86,000.

However, sellers could become more active again around those higher levels. Coinpaper previously reported that Bitcoin had struggled to clear $82,000, making the current move a continuation of that earlier battle.

One of the biggest supports for Bitcoin's latest recovery has been renewed demand from US spot Bitcoin ETFs. Bitcoin ETFs recorded $433 million in net inflows on September 18, according to Farside Investors. Fidelity's FBTC led the inflows with $310.7 million.

BlackRock's IBIT recorded another $108.4 million. The $433 million inflow came after $159.5 million entered the ETFs on September 17. This marked a major change from the heavy selling seen earlier in the week.

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US spot Bitcoin ETFs had a difficult start to the week. The funds saw about $450.4 million in net outflows on September 15. Another $295.9 million left the funds on September 16. That means roughly $746 million flowed out in just two days. The return of inflows over the following sessions helped improve sentiment around Bitcoin. Coinpaper previously reported on the roughly $746 million in Bitcoin ETF outflows over 48 hours.

Bitcoin's recovery is notable because the Federal Reserve raised interest rates earlier in the week. Higher interest rates can put pressure on riskier assets such as cryptocurrencies because investors may prefer safer, interest-generating assets.

Investors were also expecting at least one more rate increase this year. Despite this pressure, Bitcoin managed to recover above $80,000. Fundstrat's head of digital assets, Sean Farrell, said on Friday that crypto had absorbed a fairly aggressive shift toward tighter monetary policy without suffering major damage.

Another factor in the crypto market was the failure of the CLARITY Act to move forward in the Senate. The legislation was designed to create a federal regulatory framework for the wider digital asset industry. Its failure had added pressure to the crypto market earlier. But Bitcoin later recovered despite the setback.

On Thursday, the Securities and Exchange Commission introduced a conditional exemption allowing certain tokenized stocks to trade on blockchains for the next five years. The move came after the CLARITY Act failed to advance in the Senate. The development added activity to the broader digital asset market.