Bitcoin price today: $67,000
- Bitcoin price dips for a second consecutive day as holders book some profits.
- US Spot ETF experienced inflows of $297.60 million on Monday.
- Crypto market price action may be choppy this week due to a lack of immediate catalysts.
Bitcoin (BTC) continues to trade in the red on Tuesday after facing rejection around the $70,000 level on Monday. Despite the price decline, institutional investors capitalized on the recent dips, with the US spot Exchange Traded Funds (ETFs) recording over $297 million in inflows. Looking ahead, crypto market price action may be choppy this week due to a lack of immediate catalysts.
Bitcoin institutional investors bought recent dips
On Monday, institutional investors capitalized on Bitcoin price dips. Coinglass ETF data shows that the US spot ETFs experienced a net inflow of $297.60 million, largely fueled by BlackRock (IBIT) funds, contributing $332.30 million. This marks seven consecutive days of inflows, and if this trend continues or intensifies, it could further bolster Bitcoin’s recent price rally.
Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass
Santiment’s Network Realized Profit/Loss (NPL) indicator gives an idea about what could be behind the recent price dips. This indicator computes a daily network-level Return On Investment (ROI) based on the coin’s on-chain transaction volume. Strong spikes in a coin’s NPL indicate that its holders are, on average, selling their bags at a significant profit. On the other hand, strong dips imply that the coin’s holders are, on average, realizing losses, suggesting panic sell-offs and investor capitulation.
In BTC’s case, the NPL indicator spiked from 348.87 million to 1.64 billion from Saturday to Sunday. This uptick indicates that the holders were, on average, taking profits.
%20[12.57.29,%2022%20Oct,%202024]-638651905585441497.png)
Bitcoin Network Realized Profit/Loss chart. Source: Santiment
QCP Capital’s report on Monday highlights that crypto market price action may be choppy this week due to a lack of immediate catalysts. However, it also notes an optimistic sentiment driven by the upcoming US elections, to be held in 15 days, and strong equity performance, as evidenced by Risk Reversals shifting in favor of Calls across all tenors.
Bitcoin Price Forecast: Not strong enough to overcome $70,000
Bitcoin price faces resistance around the psychologically significant $70,000 level, declining 2.4% on Monday. At the time of writing on Tuesday, it continues to trade slightly lower at approximately $67,100.
If BTC continues its retracement, it could decline further to retest its next psychological support level, $66,000.
The Relative Strength Index (RSI) on the daily chart trades at 60 and points downwards after rejection from an overbought level of 70, indicating weakness in bullish momentum. If it continues to decline and closes below its neutral level of 50, it could lead to a sharp decline in Bitcoin price.
BTC/USDT daily chart
If BTC breaks and closes above $70,079, it could rally to its next key barrier, which is already the all-time high of $73,777 seen in mid-March.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
XRP fails to recover even as Ripple files appeal in response to SEC's move
Ripple price has been range bound between $0.5666 and $0.5068 since October 3. Over the past 20 days, XRP has traded within the range even as the SEC vs. Ripple lawsuit sees new developments.
Ethereum Price Forecast: ETH declines below $2,500 as demand fades
Ethereum price is nearing its daily support level of $2,461; a firm close below this level would suggest a decline ahead. Coinbase Premium Index shows signs of weakness and remains below neutral levels.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC shows signs of recovery
Bitcoin has found support at the key $66,000 level, suggesting a potential recovery. However, Ethereum and Ripple prices are struggling below their critical support levels, indicating a possible continuation of their downtrends.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin (BTC) trades slightly down at around $67,500 on Friday after finding support around the $66,000 level on Wednesday, following three consecutive days of decline earlier in the week.
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.