Bitcoin ETF Withdrawals Exceed $550M, Exerting Downward Pressure on BTC Below $95K
After experiencing a bearish trend for the past four days, the price of Bitcoin (BTC) has significantly slowed down its initial bullish momentum towards the highly anticipated target of $100k. Additionally, the flagship cryptocurrency has consistently closed below the previously established support level of $95k.
With the altcoin industry gradually gaining bullish momentum, Bitcoin dominance is signaling further weakness in the short term. In the daily time frame, Bitcoin dominance has been forming higher highs, but the Relative Strength Index (RSI) has been forming a bearish divergence. As a result, it is safe to assume that more investors are turning their focus to the altcoin industry, thus escalating the ongoing rotation of cryptocurrency assets.
The bleeding of spot Bitcoin ETFs continues. Since reaching $99.5k last week, the extreme greed from investors has dropped from 93 percent to about 75 percent, indicating only greed at the time of this writing. In the past two days, US spot BTC ETFs have seen a net cash outflow of over $550 million. On Tuesday, the issuers of US spot BTC ETFs experienced a net cash outflow of approximately $122 million. BlackRock’s IBIT had a zero net cash flow on Tuesday, while Fidelity’s FBTC and Grayscale’s GBTC saw the highest cash outflow of $95 million and $36 million, respectively. Meanwhile, Bitwise BITB and Grayscale’s BTC were the only issuers with a positive cash inflow of about $6.47 million and $4.84 million, respectively.
What comes next?
Bitcoin is still following a similar pattern to the end of last year. It broke free from a range of fluctuations, rallied, and is now trading below resistance while maintaining higher lows. Hold on tight, as a higher rally is expected soon.
The price of Bitcoin is currently in a macro bull rally that was confirmed after the 2024 US elections. However, the bullish sentiment is gradually shifting towards the altcoin industry, led by Ethereum (ETH). From a technical analysis perspective, if the current range above $91k fails to hold, the BTC price could retest the support level of around $85k. According to veteran trader Peter Brandt, Bitcoin price could rally towards $130k before experiencing a major correction similar to previous bull cycles.
Tags: Bitcoin