Bitcoin Price Dips Below $63,000 Amidst Positive On-Chain Metrics and ETF Inflows
The price of Bitcoin has fallen below $63,000, dropping by 2.2% on Monday and currently trading near its 200-day Exponential Moving Average (EMA) at approximately $62,000. This decline occurred after Bitcoin was met with resistance at the $65,400 level. Despite this retracement, on-chain metrics and recent inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) remain bullish, suggesting potential for a rebound in the near future.
On Monday, U.S. spot Bitcoin ETFs recorded a significant inflow of $200.04 million, marking the most substantial inflow since mid-July. Such consistent inflow trends, which began on August 15, indicate a strong positive sentiment among investors. The cumulative Bitcoin reserves held by these 11 U.S. spot Bitcoin ETFs now total $46.90 billion, highlighting an increasing institutional interest in Bitcoin.
Cryptocurrency analytics firm CryptoQuant’s data reveals that on Monday, Bitcoin experienced a net outflow of approximately 45,500 BTC from exchanges. This negative net flow indicates that more coins were removed for long-term holding, which typically suggests bullish sentiment and a reduction in immediate selling pressure.
Furthermore, Coinglass indicates that the long-to-short ratio on Binance is currently at 1.33, with a value above one implying that more traders are positioning themselves for a price increase of the asset.
From a technical analysis perspective, Bitcoin’s price is likely to find support at the 200-day EMA around $62,267. Should the asset bounce back from this threshold, it could potentially rally towards $65,379, with possibilities of further gains toward the July 29 high of $70,079. Indications from the Relative Strength Index (RSI) and Awesome Oscillator (AO) also suggest that momentum may shift favorably in the near term. However, should Bitcoin close below the August 21 low of $58,783, a further decline to a support level of $56,022 could materialize, thus undermining the bullish outlook.
In summary, while Bitcoin continues to experience short-term price dips, factors such as positive on-chain metrics, significant inflows in ETFs, and favorable technical indicators suggest there remains potential for recovery. Investors should remain vigilant to market movements and conduct thorough analyses before making investment decisions.
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