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BTC Spot ETFs Outflows Continue — Bitcoin Price Falls To $65,000

Published June 18, 2024 4:13 PM
Nikola Lazic
Published June 18, 2024 4:13 PM

Key Takeaways

  • Bitcoin ETFs experienced significant outflows of $146 million.
  • Bitcoin’s price challenges the $65,000 support level.
  • Bitcoin’s interaction with resistance is critical to trend direction.

Bitcoin spot Exchange-Traded Funds (ETFs) witnessed significant net outflows of $146 million on June 17, continuing the withdrawals in six days. This pattern reflects growing investor caution amid market volatility. 

The price of Bitcoin is currently looking for support at $65,000 as it fell from its daily open of $66,500. This was a continuation of a downtrend from June 7, when it barely came to $72,000 in an attempt to surpass its May high. 

Did it make a double top, indicating that it didn’t have the strength to proceed upward? 

BTC ETF Spot Outflows 

Fidelity’s FBTC led the outflows with $92 million on Monday, contributing to its $140 million outflows last week. Other funds like Ark Invest and 21Shares’ ARKB, Grayscale’s GBTC, and VanEck’s HODL also reported outflows, while Bitwise’s BITB saw minimal inflows.

BTC Spot ETF Netflow | Source: TheBlock

This trend of outflows  from Bitcoin spot ETFs highlights investors’ cautious stance, reflecting broader concerns about digital assets’ sustainability and growth potential. This shift in investor sentiment followed a Federal Open Market Committee (FOMC) meeting that maintained interest rates, contrasting with investor expectations of rate cuts. 

BTC Price Analysis 

Since peaking at nearly $74,000, Bitcoin has followed a descending channel. On May 17, it broke out, leading to a high of $71,800 on May 21. After falling back to $67,000 on 31, it attempted to continue its upward trend, but to no avail. The momentum was again stopped at the same level as on May 21. 

BTCUSD | Credit: Nikola Lazic/Tradingview

Since June 7, when this second interaction with the $71,800 was made, we have seen a downturn. There are two potential outcomes to consider. First, the uptrend that began on May 1 might signal a major rally, possibly leading to a new all-time high. 

If Bitcoin can rebound from the channel’s resistance and use it as support, it will enter its next bull phase of a five-wave pattern, potentially propelling it above $78,000 once this wave is complete.

Conversely, if Bitcoin reenters the descending channel, it may suggest a bearish trend. The recent rise could be seen as just a corrective three-wave pattern from its all-time high, indicating that Bitcoin is in a broader wave four correction, categorized as WXY waves, with a recent lower high possibly marking the end of wave X. This would set the stage for a potential decline to around $55,200.

The interaction of Bitcoin with the channel’s resistance at the 0.618 Fibonacci level of $62,500 will be crucial in determining which of these scenarios unfolds.

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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