Bitcoin prices hovered around $89,000 on Monday as demand for Bitcoin spot ETFs continued to wane.
summary
- Bitcoin ETFs recorded nearly $4.5 billion in outflows over the past week.
- The BTC price chart suggests a long-term bearish trend ahead.
Twelve Spot Bitcoin ETFs recorded net outflows of $497.05 million over the past week from December 15 to December 19, according to SoSoValue data. BlackRock’s IBIT had the largest outflow, with $240.3 million leaving the fund. Bitwise’s BITB and ARK 21 Shares’ ARKB followed with net outflows of $115.1 million and $107 million, respectively.
VanEck’s HODL and Grayscale’s GBTC and BTC funds also contributed a combined $74.1 million in outflows. Fidelity FBTC managed to buck this trend by recording $33.1 million in inflows during the week.
These outflows suggest that demand from institutional investors for these investment products appears to be waning, a trend that has continued over the past month, during which these funds recorded net outflows of approximately $3.5 billion. This is in stark contrast to the trend observed in October, when these ETFs received nearly $7 billion in flows as Bitcoin hit new all-time highs.
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Bitcoin (BTC) fell 6% on Friday from around $90,000 to a weekly low of $84,580. It managed to recover to around $89,800 today, December 22nd, before the bears gained the upper hand, but at the time of writing it has returned to around $89,100, up just 1% in the past 24 hours.
Aside from the weak performance of spot ETFs, Bitcoin price movements remain subdued amid thin holiday liquidity and macro concerns. Traders are also in wait-and-see mode ahead of key US macroeconomic releases on Thursday, December 25th, including GDP statistics and unemployment claims numbers.
On the daily time frame, Bitcoin has historically triggered a confluence of bearish signals prior to significant market corrections.
In particular, the Bitcoin price has formed a bearish flag since late October this year. At the time of writing, Bitcoin price is just below the lower trendline of this pattern, a move that typically signals further decline in the short term.
Bitcoin price forms multiple bearish patterns on daily chart — December 22 | Source: crypto.news
A breakdown from this bearish flag could confirm a breakdown from a much larger inverted cup and handle pattern, as previously reported by crypto.news.
With both of these bearish patterns appearing on the charts, Bitcoin is likely to remain under pressure, at least until a clear reversal signal or fundamental catalyst changes the trend.
For now, traders are keeping a close eye on the $85,220 level. This level acts as immediate support and previously served as a strong price floor for bulls to intervene to prevent further losses. A break below this support could push the price towards the psychological support of $80,000.
On the contrary, $91,415 is in line with the 23.6% Fibonacci retracement level drawn from October’s all-time high to November’s sell-off, a key resistance level that bulls need to break for meaningful upside.
read more: After $4.3B Plea, $1.7B Flagged Flows Surface, Binance Faces New Heat
Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.