For over the last 72 hours, Bitcoin price has been experiencing intense bearish sentiment as sellers bitcoin pushed the price below $40K and tested buyers’ patience at $38,500. A major factor contributing to Bitcoin’s decline appears to be the substantial outflow of funds from Bitcoin exchange-traded funds (ETFs). Notably, the Grayscale Bitcoin Trust experienced an exodus of funds, with a massive $640 million withdrawn in a single day, resulting in a total outflow of an alarming $3.45 billion. Analysts such as James Seyffart and Holger Zschaepitz are highlighting this rapid withdrawal of funds and a diminishing interest in Bitcoin ETFs as key drivers behind the recent sell-offs. However, in the face of this bearish outlook, it’s crucial for buyers to closely monitor any movement below the $38K mark, as it could potentially steer BTC price towards the $33K level. At this point, a cluster of critical technical indicators might play a crucial role in preventing any further downward trend.Big Purchases Defend GBTC OutflowThe week began on a bearish note, effectively overturning the previously bullish trend as Bitcoin’s price dipped below the vital $40,000 mark and headed toward $38K. This decline has opened the path toward lower support levels. Consequently, the critical question now is whether the anticipation for the 2024 bull run has declined, or if this represents yet another chance for traders to accumulate at lower, more attractive prices.The recent downturn in Bitcoin’s value can be attributed to a notable increase in GBTC outflows to Coinbase Prime from Grayscale. However, during this decline, other ETF providers have seized the opportunity to purchase substantial amounts of Bitcoin, a strategy that many analysts are lauding as a savvy maneuver.In the past 24 hours, the Bitcoin market experienced a total liquidation of approximately $56.6 million. This included the liquidation of about $26.5 million in long positions by buyers and over $30.1 million in short positions by sellers. This activity shows a strong contest between buyers and sellers in the $38K to $40K price range.According to insights from IntoTheBlock, Bitcoin’s Netflow remains in negative territory, indicating that investors are actively accumulating BTC during this dip. Presently, the Netflow stands at -1.91K BTC, signifying that the outflow of Bitcoin is exceeding the inflow.If the trend of negative netflow continues, it might lead to a decrease in selling pressure on exchanges. With fewer Bitcoins available for trading, the supply-demand trend could tilt towards a price increase, especially if the demand remains constant or increases. This could contribute to price stability or even a bullish trend in the Bitcoin market.What’s Next For BTC Price?Bitcoin has experienced notable fluctuations recently, as seen by a recent rebound from the low of $38,500. Buyers successfully defended the price near $38.5K and triggered a rebound toward $40,000. However, sellers remain active near resistance channels. As of writing, BTC price trades at $40,005, surging over 2.5% from yesterday’s rate.According to a prominent analyst, Ali Charts, a potential downturn for Bitcoin was highlighted, with a specific focus on the critical $38,000 level. If Bitcoin closes below this threshold on the weekly chart, it could be a sign of further decline, aiming for a robust support zone around $33,000.This $33,000 level is supported by several technical factors. It encompasses the lower boundary of a parallel channel, intersects with the 0.5 Fibonacci retracement level, and aligns with the 50-week simple moving average. Collectively, these indicators create a substantial defensive barrier that might arrest further price drops in Bitcoin.Buyers are currently aiming to send the BTC price above the EMA20 trend line but sellers reject the price at higher levels. However, a surge above $40K and a momentum near $43K might strengthen buying confidence, triggering renewed interest. This might send the BTC price to the $46K level.On the other hand, should the price find support at $38K, we might see an immediate attempt for a decline toward $36,000. However, this level might also attract strong buying pressure. By the way, Bitcoin is one of the best crypto to buy now.

Leave a Reply

Your email address will not be published. Required fields are marked *