Bitcoin

Currently, Bitcoin is navigating a critical juncture amidst recent developments concerning Bitcoin Exchange-Traded Funds (ETFs). Tuesday saw a notable net outflow of approximately $78 million from spot Bitcoin ETFs, triggering concerns among market observers.

According to analyst Josh from Crypto World, this outflow trend has prompted ETF providers to offload their Bitcoin holdings, exerting downward pressure on prices. Essentially, as investors withdraw funds from these ETFs, managers are compelled to sell Bitcoin to meet cash redemption requests, thereby maintaining the ETF shares’ market value close to their net asset worth.

The preceding Monday had witnessed a substantial net inflow of nearly $500 million into Bitcoin ETFs, underscoring a stark contrast in market sentiment between the two days. This recent selling pressure stands as a significant driver behind the bearish trend witnessed in Bitcoin’s market.

Technical Analysis
Regarding Bitcoin’s technical outlook, the 4-day chart continues to indicate a bullish trend. The Super Trend Indicator remains in the green zone, suggesting a bullish momentum unless a 4-day candle closes below the critical support level of $55,800, which has not yet occurred.

On the daily chart, Bitcoin is encountering resistance within the $67,000 to $68,300 range, historically a zone of substantial trading activity. A breakthrough above this resistance could potentially propel Bitcoin towards the next key resistance zone, spanning from $72,000 to $74,000. However, there are indications of short-term bearish divergence, hinting at a possible minor pullback or sideways movement before further upward momentum.

The Bitcoin liquidation heat map reveals a concentration of liquidity between $65,300 and $65,400, marking a plausible short-term target for Bitcoin’s price given its tendency to gravitate towards areas of high liquidity.

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Bitcoin
Crypto Market News
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