Bitcoin Price Prediction: ETF Sell-Off Weighs on Bitcoin Bulls; $70K Target Appears Unlikely
The post Bitcoin Price Prediction: ETF Sell-Off Weighs on Bitcoin Bulls; $70K Target Appears Unlikely appeared first on Coinpedia Fintech News
Currently, Bitcoin is trying to escape a critical short-term warning signal. This situation is largely attributed to recent activities within Bitcoin Exchange-Traded Funds (ETFs). On Tuesday, there was a significant net outflow of approximately $78 million from spot Bitcoin ETFs.
According to analyst Josh of Crypto World, this outflow trend is causing ETF providers to liquidate their Bitcoin holdings, thereby exerting downward pressure on the price. Essentially, when investors pull out funds from these ETFs, the ETF managers must sell Bitcoin to redeem the US dollars requested by investors. This mechanism helps prevent ETF shares from trading at a discount to their net asset value.
Prior to this, Monday had witnessed a substantial net inflow of nearly half a billion USD into Bitcoin ETFs, highlighting a stark contrast in market sentiment between the two days. This recent selling pressure is a primary factor behind the bearish price action observed in Bitcoin’s market.
Technical Analysis
Discussing Bitcoin’s technical analysis, he said that the 4-day chart still signals a bullish trend. The Super Trend Indicator remains green, suggesting that Bitcoin is in a bullish phase unless a 4-day candle closes below $55,800—a threshold that has not yet been breached.
On the daily chart, Bitcoin is encountering resistance in the $67,000 to $68,300 range, where significant trading volume has historically occurred. A breakout above this resistance could propel Bitcoin towards the next major resistance zone of $72,000 to $74,000. Despite this, some short-term bearish divergence is evident, hinting at a possible brief pullback or sideways price action before any movement.
The Bitcoin liquidation heat map shows a concentration of liquidity between $65,300 and $65,400. This range could serve as a short-term target for Bitcoin’s price, given its tendency to move towards areas with high liquidity.
