- Bitcoin price recovery rally hints at a new ATH around the $74,000 to $75,000 range.
- Declining BTC spot ETF inflows indicate room for a correction.
- A sweep of the current ATH of $73,949 could lead to a dip into the $59,111 to $53,120 weekly imbalance.
Bitcoin’s weekly sell signal, as mentioned in the previous publication, seems to have played out without providing a dip into a key range. This premature bounce could be a short squeeze that eventually catches the eager bulls off guard.
Also read: Why is the crypto market crashing?
Bitcoin spot ETF flows have a lagging impact
Unlike the crypto markets, where data is readily available without delays, the traditional markets are a different story. The Bitcoin ETF flow data is delayed and, hence, a lagging indicator. According to CoinGlass data, after noting the highest inflow of $1.04 billion on March 13, the inflows started to decline sharply. On March 18, there was a net outflow of $154 million, which eventually declined to the largest netflow of -$326 million on March 19.
Interestingly, this decline in net flows coincided with the drop in Bitcoin's price in the past week.
BTC ETF flows
Hence, if the outflows continue to dominate, the current Bitcoin price bounce could soon see a steep correction.
Read more: Bitcoin Weekly Forecast: Can BTC hit $100,000 without a correction?
BTC price bounce promises a new ATH
On the daily chart, Bitcoin price shows that the bullish trend is still intact. Although BTC came close to retesting the $59,111 to $53,120 weekly imbalance, it failed. The premature spike in buying pressure has led to a promising recovery rally, which is reminiscent of what occurred during the top formation in November 2021.
However, unlike 2021, a reversal is unlikely, considering the bullish market conditions. Hence, investors could see a correction that stabilizes inside the aforementioned weekly imbalance.
The Relative Strength Index bouncing off the' 50' mean level supports this fluke rally or a sweep of the new ATH of $73,949, suggesting the end of bullish exhaustion and the potential start of another leg up.
A sell-off or profit-taking around $74,000 or the $75,000 psychological level is the sell signal investors should keep an eye out for. This development could lead to a correction into the aforementioned imbalance liquidating the newly opened long positions.
BTC/USDT 1-day chart
Invalidating this bearish outlook for Bitcoin price is a spike in buying pressure that pushes BTC to flip $75,000 into a support level. If this move stabilizes above the said level, it would allow accumulation from sidelined buyers to push BTC to the next key level of $80,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.