On Tuesday, Bitcoin (BTC) exchange-traded funds (ETFs) reported their first net outflow in a week. This trend coincides with a consistent decrease in market activity, leading to a significant drop in the coin’s price, which has reached a weekly low.
At the time of writing, Bitcoin is priced at $66,776, reflecting a 2% decrease over the last week. As bearish sentiment grows among investors, holders might need to brace themselves for possible additional losses.
Bitcoin ETFs Report Outflows
According to data from SosoValue, BTC spot ETFs faced a net outflow of $79.09 million on Tuesday, ending a sequence of seven days with inflows exceeding $2 billion.
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The negative flow on Tuesday was primarily driven by a $134 million outflow from the ARK 21Shares Bitcoin ETF, while other ETF products either experienced inflows or reported no changes. Additionally, BlackRock’s iShares Bitcoin ETF (IBIT), the largest ETF provider by assets, recorded $43 million in inflows, a significant decrease from $329 million the day prior.
The decline in institutional demand is largely linked to the recent downturn in Bitcoin’s price. In the past week, the cryptocurrency has decreased by 2%, reaching its lowest price point in seven days at the time of reporting.
BeInCrypto’s evaluation of momentum indicators indicates a gradual rise in bearish sentiment toward the leading coin. For instance, the Moving Average Convergence Divergence (MACD) readings show the MACD line (blue) is about to cross below its signal line (orange).
This indicator assesses an asset’s price trends and momentum, helping to identify potential buy or sell signals. The current setup indicates increased selling pressure in the market. The foreseen crossover suggests that the momentum of the asset’s price is weakening, hinting at a potential downward trend or correction.
BTC Price Prediction: Coin Faces Two Possibilities
Bitcoin’s price is approaching its 20-day exponential moving average (EMA), which tracks its average price over the last 20 trading days.
As the asset’s price approaches this level, it suggests a pullback, but it may find support near the 20-day EMA. If the price fails to maintain itself above the 20-day EMA and falls below it, the likelihood of a trend reversal significantly increases. This indicates a rise in bearish sentiment, paving the way for further declines.
Currently, Bitcoin is trading at $66,776, slightly above the former resistance of $64,543, which it has recently converted into support.
If the prevailing bearish sentiment leads to a breakdown of this support upon re-evaluation, the price could fall toward the next substantial support level at $61,686. Should BTC bears manage to breach this point, the price may further decline to $58,828.
Read more: Bitcoin (BTC) Price Prediction for 2024/2025/2030
Conversely, if market sentiment shifts positively and bullish momentum begins to build, Bitcoin could increase toward $68,612. Surpassing this resistance would set BTC on a possible trajectory to reclaim its all-time high of $73,794.
Disclaimer
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