Bitcoin ETF Outflows Surpass $550M, Pressuring BTC Below $95K
After closing the past four days with a bearish outlook, Bitcoin (BTC) price has slowed significantly from its initial bullish momentum towards the much-hyped $100,000 target. Furthermore, the flagship coin has consistently closed below the previously set support level of $95,000.
As the altcoin industry gradually gains bullish momentum, Bitcoin’s dominance is set to weaken further in the near term. On the daily time frame, Bitcoin dominance has formed higher highs, but the Relative Strength Index (RSI) has formed a bearish divergence.
Therefore, it is certain that more investors are turning their attention to the altcoin sector, thus exacerbating the ongoing crypto-cash rotation.
Spot Bitcoin ETFs lose further blood
Since Bitcoin hit $99,500 last week, extreme greed among investors has dropped from 93% to around 75%, which at the time of writing indicates nothing more than greed. U.S. spot BTC ETFs have seen net cash outflows of more than $550 million over the past two days.
On Tuesday, U.S. spot BTC ETF issuers saw net cash outflows of approximately $122 million.
BlackRock’s IBIT had zero net cash flow on Tuesday, while Fidelity’s FBTC and Grayscale’s GBTC had the highest cash outflows, at $95 million and $36 million, respectively.
Meanwhile, Bitwise BITB and Grayscale’s BTC are the only issuers with positive cash inflows, around $6.47 million and $4.84 million respectively.
What’s next?
Bitcoin price is in the midst of a macro bull rally, which is confirmed in the wake of the 2024 US election. However, the bullish wave is slowly turning towards the altcoin sector, led by Ethereum (ETH).
From a technical analysis perspective, BTC price may retest the support around $85,000 if it fails to maintain the current range above $91,000.
Veteran trader Peter Brandt said that Bitcoin price could rise to $130,000 before undergoing a major correction similar to previous bull cycles.
