This substantial decrease in Bitcoin holdings by ETFs coincides with the cryptocurrency’s price drop below the $60,000 mark, a critical support level that had previously been considered a strong threshold that held the market together. This price decline has led to significant outflows, indicating a shift in investor sentiment toward caution due to increased market volatility and potential risk aversion.
BTC/USD Chart by TradingViewFrom the recent chart analysis, Bitcoin shows that it struggled to maintain levels above $60,000 and faced resistance near $61,018. Following the drop, the price found temporary footing around $52,107, suggesting a possible new lower boundary of support. Currently, Bitcoin is trading slightly above $59,375, trying to recover from recent falls but still below the critical resistance level.
For Bitcoin’s price to exhibit growth and regain confidence among investors, it would need to consistently hold above the $52,107 (200 EMA) support level and ideally break through the resistance at $61,018. This movement would likely require positive sentiment across the market, possibly driven by rising demand for risky assets.
Looking ahead, the key for Bitcoin will be its ability to stabilize and attract investors back to a bullish stance. If it successfully maintains above the mentioned support and breaks past the resistance, it could signal a turnaround to a bullish market. However, failure to do so might see the price testing even lower support levels, possibly around $50,000.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
