As a crypto investor with some experience under my belt, I’ve seen the impact of Bitcoin ETFs on the market firsthand. The last bull run was fueled by the influx of institutional money pouring into Bitcoin through these vehicles. However, the recent reversal of ETF flows is causing concern, and the market seems to be in a holding pattern.
Since the cryptocurrency market’s halving in late April, there has been a sense of monotony with Bitcoin‘s price prediction showing technical complications. The technical perspective indicates a developing resistance level at $65,000, while the near-term support lies around $62,000. This implies continued fluctuating price trends.
Over the past week, Bitcoin’s value has decreased by 5.6%, landing it at $62,243. Several prominent altcoins, such as Ethereum (ETH), Solana (SOL), and XRP, have also experienced losses and are currently in a downtrend. This trend indicates a 3% decrease in the total market capitalization, now standing at approximately $2.42 trillion.
Bitcoin Price Forecast: What’s Next For BTC As ETF Flows Reverse
Bitcoins greatest spike to a new record-breaking peak occurred prior to its halving event, an achievement unprecedented in history, largely driven by the introduction of Bitcoin ETFs.
Investors, both institutional and retail, significantly boosted their involvement with Bitcoin via ETFs, leading to an extraordinary price surge to reach a peak of $73,837 according to CoinGecko’s figures.
As a researcher studying the cryptocurrency market, I’ve observed some significant shifts over the past few weeks. Contrary to expectations, Bitcoin halving has not led to an immediate market turnaround as previously anticipated. Instead, the approval process for the Bitcoin ETF has been progressing slowly, which some experts believe is contributing to the current market stagnation.
Based on SoSoValue’s data, the cumulative net inflow amount had decreased to $11.99 billion as of April 26, down from its peak of around $13 billion in March. The daily outflow stood at $83.61 million.
As a researcher examining the daily flows of various Exchange-Traded Funds (ETFs), I’ve noticed that Grayscale’s GBTC account experienced significant outflows to the tune of $82.42 million. Conversely, ARK Invest and 21 Shares’ ARKB ETF was the only one among them to record positive inflows, with a daily net inflow of approximately $5.43 million.
Where Will Bitcoin Price Bottom Before Post-Halving Bull Run
In Q1, the significant surge in Bitcoin’s price, known as a ballistic rally, could largely be linked back to the influence of Exchange-Traded Funds (ETFs). On the other hand, altcoins experienced only modest increases during this period, unlike past bull markets where most of them reached new record highs.
As a researcher studying the Bitcoin market, I can tell you that with the halving having already taken place, the supply of Bitcoin is set to decrease progressively over time. Simultaneously, demand for Bitcoin is expected to continue growing. This dynamic could potentially lead us into another bull market phase. Additionally, if the ETF approval process turns positive in the upcoming weeks and months, it could serve as an additional catalyst for increased demand for Bitcoin. Consequently, this combination of factors may create a bullish environment for Bitcoin investors.
As a crypto investor, I’m keeping a close eye on Bitcoin’s price action at the current support level of $62,000. For now, this level seems to be holding steady, but I can’t help but feel that further losses may be in store. This is because Bitcoin’s price is currently sitting below two important bull market indicators: the 20-day Exponential Moving Average (EMA) and the 50-day EMA. These moving averages are typically represented by the blue and red lines on most charting tools, and when the price of an asset falls below these key trendlines, it can be a bearish sign for the market. Therefore, I’m staying cautious and keeping my stop losses in place as we navigate through this volatile market.
The gray zone on the graph signifies a region of significance for both buyers and sellers. Should this area hold as a support level, investors can anticipate further buying activity, potentially leading Bitcoin’s price back up to around $70,000.
The Relative Strength Index (RSI) reaching 45 indicates a stronger hold of the bullish trend for Bitcoin (BTC). Traders are keenly watching the RSI’s progression, and a continuation of this upward trend may lead to increased demand for long positions. Conversely, sellers are anticipating price declines below the gray band or $60,000 threshold. The current chart doesn’t show any clear indication of an impending bottom, suggesting that Bitcoin prices might continue falling in May. A sharp drop in the RSI close to oversold territory could potentially trigger more short selling on BTC, intensifying the existing bearish trend.
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2024-04-29 16:48