On Tuesday, Bitcoin exchange-traded funds (ETFs) (BTC) experienced their first net negative flow in seven days. This comes amid a sustained decline in market activity that has seen the price of the leading coin fall to a one-week low.
At the time of writing, Bitcoin is trading at $66,776, with the price down 2% over the past week. As bearish sentiment around the coin continually increases, holders may have to prepare for possible further losses.
Bitcoin ETFs Capture Outflows
SosoValue data shows BTC spot ETFs experienced net outflows of $79.09 million on Tuesday, breaking a streak of seven straight days of inflows totaling more than $2 billion.
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Tuesday’s negative flows were primarily driven by $134 million in outflows from the ARK 21Shares Bitcoin ETF, as other ETF products either saw inflows or saw no activity. Moreso, the largest ETF provider by assets under management, BlackRock’s iShares Bitcoin ETF (IBIT), recorded inflows of $43 million, down significantly from the previous day’s $329 million.
This decline in institutional demand is largely due to the recent fall in Bitcoin’s value. The cryptocurrency has fallen 2% over the past week, reaching its lowest price in seven days at the time of publication.
BeInCrypto’s assessment of momentum indicators revealed a gradual increase in bearish sentiment towards the leading coin. For example, moving average convergence divergence (MACD) readings indicate that the MACD line (blue) is about to cross the trend line (orange).
This indicator measures the price trends and dynamics of an asset and identifies potential buy or sell signals. With this setup, it confirms increased selling pressure in the market. A potential crossover suggests that the asset’s price momentum is weakening and a downtrend or correction may follow.
BTC Price Prediction: The Coin Has Only Two Options
Bitcoin’s price falls towards its 20-day exponential moving average (EMA), which measures its average price over the last 20 trading days.
When the price of an asset falls to this level, it suggests that the asset is pulling back but may find support near the 20-day EMA. If the price fails to hold above the 20-day EMA and breaks below it, this significantly increases the likelihood of a trend reversal. This suggests bearish sentiment is rising and further declines could follow.
As of this writing, Bitcoin is trading at $66,776. This is just above the previous resistance level of $64,543, which recently turned into support.
If rising bearish sentiment causes this support to fail on retest, Bitcoin’s price could fall to the next major support at $61,686. If BTC bears break this level, the price could fall further to $58,828.
Read more: Bitcoin (BTC) Price Forecast for 2024/2025/2030
However, if market sentiment improves and bullish momentum gains, Bitcoin could rise to $68,612. Breaking through this resistance would allow BTC to potentially reclaim its all-time high of $73,794.
