Bitcoin Prediction: Is Price Stuck Due to ETF Inflow Drop? Healthy Inflows Hint at $70k, but Decline Could Spell Trouble
Anjali Belgaumkar19 Jul 20242 min read
Bitcoin is currently experiencing a short-term warning signal as it continues to retest a critical chart area. This movement is happening alongside significant new liquidations that need close monitoring. According to analyst Josh of Crypto World, Wednesday, there was a decrease in net inflow to spot Bitcoin ETFs compared to earlier in the week. Monday saw a net inflow of approximately $300 million, and Tuesday saw an even larger inflow of around $422 million.
However, by Wednesday, this number dropped to about $53 million. While still positive, this considerable decrease from earlier in the week correlates with a slowdown in bullish price action for Bitcoin. Monitoring these ETF inflows is crucial as a continued decline could dampen Bitcoin’s bullish momentum seen recently.
Bitcoin Support And Resistance Levels:
Currently, Bitcoin is retesting a critical support area between $63,000 and $64,000. Holding above this support is crucial, as a daily candle close below $63,000 could signal a short-term bearish trend, potentially pushing the price down to the next support between $60,000 and $61,000.
Resistance for Bitcoin lies just below $67,000, extending up to around $68,000, with further resistance between $72,000 and $74,000. Even in a bullish trend, price struggles around these resistance areas are normal.
Pullback On Cards?
A newly confirmed bearish divergence has appeared over the last day. While less impactful than a daily divergence, it suggests some choppy sideways action or a slight pullback over the next day or so. This short-term bearish divergence contrasts with a more impactful bullish divergence on the daily chart, which indicates that any pullback might be temporary within the broader bullish trend.
It’s important for Bitcoin to maintain support above key levels, as falling below could lead to tapping into major liquidity areas. The Bitcoin liquidation heat map shows new liquidity zones emerging around $61.9k to $62.1k, with more liquidity at $59,000 and $56.5k to $57,000. There is also some short-term liquidity building around $66.4k. Given this, a potential scenario might include a quick drop to around $62,000 before a rebound, driven by these liquidity levels.
Read Also: Grayscale Shakes Up Ethereum ETF Market with $2 Billion Fee Waiver, Outshining BlackRock
