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Bitcoin price has stalled at $105,000 as increasing spot ETF outflows and shifting investor sentiment keep the cryptocurrency market in check. Despite recent fluctuations, Bitcoin remains a focal point for investors looking to navigate the volatile crypto landscape.

Bitcoin Price Analysis

On Sunday, June 8, Bitcoin (BTC) hit $105,550, marking a 5% recovery from its lowest point last week. However, it still trades 5.75% below its peak this year. Investors have been taking profits after Bitcoin surged to an all-time high of $111,900 in May—a remarkable 50% increase from its April low.

Recent market data indicates a slowdown in momentum. Spot ETF outflows have been a significant factor, with $128 million leaving these funds last week, following $157 million in outflows the prior week. This marks the first consecutive weekly outflows since April, signaling potential investor caution.

Neutral Sentiment Among Investors

Investor sentiment has shifted this month, moving from bullish to neutral. The widely followed Fear and Greed Index now sits at 56, reflecting a cautious outlook among crypto enthusiasts. This shift could influence short-term price movements, as traders weigh market uncertainties.

China’s Potential Bitcoin Sale

Adding to market jitters, reports suggest that China is considering selling its seized Bitcoin holdings. Data estimates that the country holds approximately 190,000 BTC, valued at over $20 billion. If sold, this could introduce significant supply pressure on the market, potentially impacting prices.

Factors Supporting Bitcoin’s Long-Term Growth

Despite recent headwinds, two key factors could bolster Bitcoin’s price in the coming weeks:

1. Declining Bitcoin Supply on Exchanges

Data shows that the total supply of Bitcoin on exchanges has been steadily decreasing. Currently, exchange-held Bitcoin stands at 1.18 million, down from 1.35 million at the start of the month. This trend highlights growing long-term holding behavior among investors, which often reduces sell-side pressure.

2. Increased Institutional Accumulation

Institutional interest in Bitcoin remains robust. Several companies are ramping up their Bitcoin acquisitions. A leading strategy firm plans to raise over $2 billion to purchase Bitcoin, while another organization has filed to raise up to $12 billion for similar investments. Additionally, other firms, including MetaPlanet and The Blockchain Group, are intensifying their accumulation efforts. Such large-scale purchases could provide significant upward momentum for BTC prices.

Bitcoin Price Technical Analysis

From a technical perspective, Bitcoin’s price action shows promising signs. The daily chart reveals the formation of a cup-and-handle pattern, with the handle nearing completion. This pattern is often a bullish indicator, suggesting potential upward movement.

Moreover, Bitcoin remains above both the 50-day and 200-day moving averages, which serve as strong support levels. It has also stayed above the key resistance and support pivot point derived from the Murrey Math Lines indicator, further reinforcing its bullish outlook.

If the current trend holds, Bitcoin could target the upper boundary of the cup pattern at $109,477. A breakout above its all-time high of $111,900 could pave the way for a potential rally toward the $150,000 mark in the medium term.

Key Takeaways

  • Bitcoin price hovers around $105,000, with recent fluctuations driven by profit-taking and ETF outflows.
  • Investor sentiment has turned neutral, as reflected in the Fear and Greed Index.
  • China’s potential sale of seized Bitcoin adds uncertainty to the market.
  • Long-term prospects remain strong, supported by declining exchange-held Bitcoin supply and increased institutional buying.
  • Technical analysis points to a bullish outlook, with potential targets of $109,477 and $150,000.

Bitcoin investors should stay informed and keep a close eye on market developments to make well-informed decisions. The cryptocurrency landscape remains dynamic, offering both challenges and opportunities for traders and long-term holders.

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