In line with the falling bitcoin price, the bitcoin ETF spot market has been looking quite bleak in recent days. According data from analysis firm BitMEX ResearchThese btc ETFs have recorded a negative net flow over the last four trading sessions.
This situation has been marked by large levels of outflows from Grayscale's GBTC and record low inflows to the other ETFs, mainly market leaders BlackRock's IBIT and Fidelity's FBTC. However, amid these steadily declining net flows, Ki Young Ju, a prominent analyst and CEO of Cryptoquant, has predicted a possible resurgence in the bitcoin ETF spot market.
Analyst Points to $56,000 Level Critical for bitcoin ETF Recovery
in a mail On X on March 22, Ki Young Ju shared that an increase in net spot flows to bitcoin ETFs could occur even if the btc price decline continues. Using data from historical net flow trends, the analyst noted that demand for bitcoin ETFs typically begins when the cryptocurrency reaches certain support levels.
Young Ju stated that in particular, new btc whales, especially ETF buyers, have proven to have an on-chain cost of $56,000. This suggests that new large bitcoin holders, particularly those who invested in ETFs, generally purchased bitcoin at an average price of $56,000. Following this trend, the crypto quant boss believes that the bitcoin ETF spot market could see massive inflows if btc were to reach the specified price level.
bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin ETF spot net flows are slowing.
The claim can be recovered if $btc The price is approaching critical support levels.
The new whales, mainly ETF buyers, have an on-chain cost of $56k. Corrections typically involve a maximum drawdown of around 30% in bull markets, with a maximum pain of $51,000. pic.twitter.com/vZCG4F0Gh5
– Ki Young Ju (@ki_young_ju) March 22, 2024
For now, the price of bitcoin has fluctuated between $62,000 and $68,000, as seen in the last week. However, Young Ju believes that such a decline is quite feasible as price corrections usually have a maximum drop of 30%. Using btc's most recent high of $73,750, the analyst predicts that the asset's price could still trade as low as $51,000.
btc Price Overview
At press time, bitcoin bitcoin/” target=”_blank” rel=”nofollow”>keep going to trade at $64,065.74, which represents a drop of 3.73% and 7.17% in the last one and seven days. Meanwhile, the asset's daily trading volume is down 3.53% and is valued at $39.62 billion.
Following historical bull cycle trends, btc may have reached its peak price before the halving event in April. If that is the case, bitcoin will likely not return to previous high price levels anytime soon and could experience further price declines in the coming weeks.
<img decoding="async" class="aligncenter size-large" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-ETF-Net-Flows-May-See-a-Rebound-If-This" alt="bitcoin” width=”1479″ height=”893″ loading=”lazy”/>
btc trading at $64,315.00 on the hourly chart | Source: BTCUSDT chart on Tradingview
Featured image from Euronews, chart from Tradingview
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