Bitcoin Price Faces Pressure Amid Demand Concerns and ETF Outflows

The Bitcoin price experienced significant pressure this week due to ongoing concerns about demand and ETF inflows. BTC is now on track for its second consecutive week in the red, falling below the crucial support level of $65,000. Currently, Bitcoin is down more than 12% from its all-time high, suggesting that the bears might be in control.

Most spot Bitcoin ETFs have recorded net outflows after the cryptocurrency failed to break the resistance point at $72,000 last week. Data indicates that all ETFs saw net outflows totaling $145.9 million, with the Fidelity Wise Origin Bitcoin Fund (FBTC) leading the way.

These outflows intensified following a hawkish interest rate decision by the Federal Reserve. The bank left interest rates unchanged between 5.25% and 5.50%, hinting at a potential cut later this year.

Additionally, Bitcoin’s price decline has been exacerbated by data showing that most Bitcoin mining companies have been selling their coins. Major players like Marathon Digital and Riot Platforms have been offloading their holdings for 33 consecutive days.

We are currently 33 days into a Bitcoin miner capitulation, with the average duration over the past five years being 41 days. Miner addresses collectively hold a substantial treasury of 700,000 BTC, but their balance has decreased by 30,000 BTC since…

Bitcoin’s weekly chart reveals some significant patterns. In March 2023, Bitcoin formed a golden cross pattern as the 200-week and 50-week Exponential Moving Averages (EMA) made a bullish crossover. It has remained above these averages since then. More importantly, Bitcoin is forming a cup and handle pattern, which is a popular bullish continuation signal. The recent consolidation appears to be part of the shoulders section of this pattern.

There is a likelihood that Bitcoin will experience a bullish breakout in the near term. This breakout will be confirmed if the price rises above the year-to-date high of $73,500. However, the main risk to this bullish outlook is that Bitcoin has formed a small double-top pattern at $72,473. A double-top is one of the most bearish signs in the market. Hence, there is a possibility that Bitcoin could drop and retest its neckline at $56,578, which is 12.65% below the current level.

For more updates and in-depth analysis on the latest cryptocurrency trends, continue exploring Global Crypto News.

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