Bitcoin faced resistance at the daily level of $63,956 and experienced a 4.2% decline over two days. The price continued to fall, dropping below $58,000 on Thursday, resulting in more than 4% in losses in a single day. On-chain data suggests that whales are taking profits, exchange supplies are increasing, U.S. spot Bitcoin ETFs experienced outflows, and the Taker Buy Sell Ratio is below one. This coincided with the German Government transferring an additional 3,000 BTC valued at $172 million, indicating market weakness that may lead to further price declines in BTC.
The German Government has been actively transferring Bitcoin, with 3,000 BTC worth $174 million moved on Thursday. Of this, 1,300 BTC totaling $75.5 million were sent to Coinbase, Bitstamp, and Kraken. Over the past week, they moved 2,240 BTC worth $142 million to various exchanges. This consistent transfer activity may have contributed to market uncertainty, potentially influencing Bitcoin’s price decline on Thursday by over 4%.
U.S. spot Bitcoin ETFs witnessed outflows totaling $20.50 million on Wednesday, following a similar trend on Tuesday. Grayscale reduced its holdings by 434.62 BTC, while Fidelity’s Bitcoin ETF increased its holdings by 104.63 BTC. This decline in investor confidence can signal a temporary dip in Bitcoin’s price. Monitoring net inflow data from ETFs is essential for understanding investor sentiment and market dynamics. Currently, 11 U.S. spot Bitcoin ETFs hold reserves totaling $53.70 billion in Bitcoin.
Whale activity on Binance showed a significant move, with a whale depositing 1,800 BTC valued at $106 million at a loss. Since June 27, this whale has deposited 5,281 BTC worth $323.2 million at a loss of approximately $20 million. This continued deposit activity may indicate a bearish market sentiment among investors, potentially influencing Bitcoin’s price movements.
On-chain data reveals a positive netflow of Bitcoin exchanges on Wednesday, reflecting an increased supply of Bitcoin on exchanges. This trend has been consistent over the past week, indicating traders may be gearing up to sell or trade their Bitcoin. Santiment’s Network Realized Profit/Loss indicator showed an uptick from 162.58 million to 673.04 million on Wednesday, suggesting holders are selling their bags at a profit. The Taker Buy Sell Ratio stood at 0.82, indicating bearish sentiment, which aligned with a 3% price decline in Bitcoin on that day.
Technical analysis of Bitcoin shows the price facing resistance at $63,956 and subsequently declining to below $58,000. If BTC closes below the weekly support level at $58,375, it could revisit its May 1 low of $56,522, a 3% decline. The Relative Strength Index and the Awesome Oscillator on the daily chart also support a bearish trend. However, if BTC closes above $63,956 and forms a higher high, it could trigger a 5% increase in price to revisit the next weekly resistance at $67,147.
