Spot Bitcoin ETFs have been experiencing outflows for seven consecutive days, coinciding with the decline in the Bitcoin price. This suggests that institutional and miner sell-offs may be behind the trend. The outflows have averaged around $100 million daily, totaling around $1.2 billion so far. Looking back at a similar trend in April-May 2024 when the funds bled for seven days, they eventually saw inflows and a significant recovery.
Despite the recent decline in the Bitcoin price to $60,000, it is still trading well above its 200-day moving average of $50,613, indicating long-term bullishness as investors opt to hold rather than sell. However, on shorter timeframes, Bitcoin is performing poorly, falling below its 50-day and 100-day moving averages of $65,403 and $63,928 respectively. These levels are crucial for the short and mid-term performance of the cryptocurrency.
The previous trend of outflows in Spot Bitcoin ETFs in 2024 could provide some insights into the current situation. After seven days of outflows, the funds saw upside with inflows for two days before experiencing outflows again. However, the recovery began when institutional investors re-entered the market, leading to 19 consecutive days of inflows and setting a new record. With the Bitcoin price showing signs of recovery and trading above the $61,000 resistance once again, a turnaround in the Spot Bitcoin ETFs could be on the horizon.
If history repeats itself, the Spot Bitcoin ETFs could see a significant turnaround soon, as seen in the recovery in May 2024. This could trigger inflows of epic proportions, driving prices higher as demand increases. Despite the short-term challenges faced by Bitcoin, the daily chart shows signs of upside with a 35% increase in trading volume. The recovery in the price above key resistance levels suggests a potential for further upward movement.
In conclusion, the recent trend of outflows in Spot Bitcoin ETFs may be a cause for concern, but historical data indicates that a turnaround could be on the horizon. Institutional investors re-entering the market could drive a significant recovery, as seen in the previous trend in 2024. With the Bitcoin price showing signs of recovery and trading above key resistance levels, there is potential for a renewed interest in the cryptocurrency and a reversal of the current outflow trend in Spot Bitcoin ETFs. Investors should pay close attention to these developments in the coming days.
