New York, USA – Bitcoin, the popular cryptocurrency, has been trading within a narrow range recently, causing concerns among investors. The bullish sentiment has weakened significantly, leading to fears that selling pressure could soon take over the market. The price of Bitcoin has been fluctuating between $73,000 and $60,700, forming a range that has been closely watched by traders.
In a recent analysis, experts had highlighted the importance of defending the $64,500 support level to break above the $66,000 resistance. However, the market saw a rejection at $67,000, resulting in a drop to $62,800. This decline occurred at a time when whale activity and ETF inflows were slowing down, further fueling speculation about the future direction of Bitcoin.
According to cryptocurrency analyst Whale Panda, Bitcoin ETF flows have been negative for the third consecutive day, with Blackrock’s ETF IBIT experiencing zero inflows after a period of significant investment. This lack of demand has been reflected in the outflows seen in Grayscale Bitcoin ETF (GBTC) and other ETFs, indicating a decrease in bullish conviction following the recent halving.
Another concerning factor highlighted by analyst Ali Martinez is the decline in whale transaction count since mid-March, signaling a shift in market dynamics. The price of Bitcoin has also lost its bullish momentum in higher timeframes, leading to increased uncertainty among traders.
Looking at the futures markets, the Open Interest in Bitcoin has been decreasing since April 10, alongside a drop in price below $70,000. This bearish sentiment has been further exacerbated by the Funding Rate, which has fallen from strongly positive to just over zero in April, reflecting speculators’ hesitancy to enter long positions.
As the spot CVD (Cumulative Volume Delta) continues its downward trend, it is likely that Bitcoin will either trend lower or remain within its current price range. The recent breach of the mid-range mark at $63,300 suggests a potential drop to $60,000 in the coming days, with the RSI on the 6-hour chart indicating bearish momentum and a lack of demand further supporting the case for a downward trend in the market.