The world’s leading cryptocurrency, Bitcoin (BTC), continues its downward spiral, dropping another 1% and nearing the $65,000 mark. This decline coincides with a significant outflow of funds from US spot Bitcoin ETFs, totaling $208 million on Monday, June 17th. This latest outflow adds to the selling pressure plaguing the market, pushing the price further down the technical chart.
Breaking Below the 50-Day Moving Average
The recent price drop has breached a crucial support level – the 50-day moving average (DMA). This technical indicator signifies a short-term downtrend, raising concerns among investors. This bearish sentiment is further amplified by the Federal Reserve’s hawkish stance on maintaining higher interest rates, potentially dampening investor enthusiasm for riskier assets like Bitcoin(BTC).
ETF Outflows Fuel the Downturn
The outflow from Bitcoin ETFs paints a concerning picture. These investment vehicles allow traditional investors to gain exposure to Bitcoin without directly owning the cryptocurrency. Last week, Bitcoin investment products witnessed a staggering $620 million outflow, with Bitcoin ETFs leading the exodus. The trend continued on Monday, with all nine US spot Bitcoin ETFs experiencing combined outflows of $208 million. Major players like Fidelity’s FBTC and Grayscale’s GBTC bled significant capital, exceeding $80 million and $60 million, respectively.
Technical Resistance Weighs Heavy
Technical analysis by Rekt Capital suggests that Bitcoin struggles to surpass the resistance zone between $60,573 and $71,524. Repeated price rejections from this range indicate a potential downward trend. A decisive breakout above $71,350 is needed to trigger a parabolic price increase. However, the current inability to even breach the lower resistance level of $67,183 suggests a weakening bullish momentum.
Also Read: Bitcoin To $8 Million? Michael Saylor’s Bullish Prediction Heats Up Crypto Market
Sellers Gaining Upper Hand
This technical weakness emboldens sellers, who are increasingly willing to offload their holdings at any sign of a rally. The once reliable support level of $67,200, which saw a strong rebound in March, has now proven to be less effective. The weaker bounce from this level in recent weeks has analysts predicting a further price drop to $63,800.
The Road Ahead for Bitcoin
Bitcoin’s(BTC) short-term outlook remains uncertain. The combined effects of ETF outflows, hawkish monetary policy, and technical resistance paint a challenging picture. Whether Bitcoin can recover lost ground or continue its descent will depend on investor sentiment and the broader market conditions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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