bitcoin Faces Correction as ETF Outflows and Liquidations Surge
Bitcoin’s price has taken a hit, dropping 14% from its yearly high. this decline could continue due to a risky pattern and ETF outflows.
The daily chart reveals a double-top pattern, signaling potential further losses. This week, spot Bitcoin ETFs lost over $1.6 billion in assets. American investors are selling off their holdings amid growing fears and liquidations.
SoSoValue data shows that spot Bitcoin ETFs lost over $1.23 billion this week. BlackRock’s IBIT and Fidelity’s FBTC saw significant asset reductions. These outflows mark a sharp turn from the previous two weeks, were they added nearly $6 billion. The crypto Fear and Greed Index has entered the fear zone, with liquidations soaring. The crypto Fear and Greed Index has also fallen into the fear zone.
investors are also turning to gold as a safer asset. Risks include a potential U.S.-china trade war, rising inflation, and credit quality issues. Three regional banks reported fraud-related losses, adding to the uncertainty.
Technically, Bitcoin’s price is under pressure, falling below the 50-day moving average. A double-top pattern at $124,355 suggests a bearish outlook. If the price drops below $92,345, it could reach its lowest point as April. Though, a move above $113,000 could change this bearish view. Stay tuned for further developments.
