bitcoin-crash-below-57000/” rel=”nofollow”>bitcoin (btc) has seen a price slowdown, having recently recovered above $60,000. This tepid price movement is believed to be due to a couple of factors, including reduced demand for the bitcoin-etf/” rel=”nofollow”>bitcoin Spot ETF.
bitcoin spot ETFs have lost their spark
He bitcoin-spot-etfs-record-outflow/” rel=”nofollow”>bitcoin Spot ETF recorded billions of dollars in net receipts in the first three months of its release. This contributed to the major rally that bitcoin recorded just as the funds were approved, with the flagship cryptocurrency reaching a bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>new all-time high (ATH) in March. However, demand for these funds has decreased since the beginning of this month.
Research firm Kaiko also noted in its recent report that net inflows into all ETFs have been steadily declining for some time now. Ultimately, this has affected bitcoin's bullish momentum, with the flagship crypto trading sidelined. bitcoin Price Action Over the Last 24 Hours Suggests Recovery Above $60,000 it was not necessarily a bullish reversal.
Andrey Stoychev, head of Prime Brokerage at Nexo, had previously warned that bitcoin was unlikely to experience a significant price increase without a catalyst. He added that the crypto token would likely continue to trade around the $67,000 price range. That means bitcoin can be expected to continue bouncing off support and resistance in the meantime.
The silver lining is that demand for spot bitcoin ETFs could pick up soon enough, and these funds are likely to provide a much-needed boost to the price of bitcoin when that happens. A turnaround seems imminent for these ETFs, especially after Grayscale's GBTC bitcoin-etf/” rel=”nofollow”>Recorded its first day of net inflows on May 3.
Another reason why the price of bitcoin has dropped
crypto Analyst Mikybull crypto He also recently predicted that bitcoin could fall below to erase the bitcoin-might-not-dip-to-9600-to-fill-the-cme-gap/” rel=”nofollow”>CME (Chicago Mercantile Exchange) Gap around $62,580. This price gap exists because the CME bitcoin futures market does not operate on weekends. The crypto analyst added that things could improve once bitcoin clears the CME gap.
The analyst also suggested that the worst may be behind us regardless of whether bitcoin continues to trade sideways, as he stated that the crypto token's local bottom is already at the bottom. However, Mikybull crypto also predict that bitcoin will need to clean the $67,000 price level and consolidate before it can advance towards $73,000.
In anticipation of this price surge, now appears to be an excellent time to accumulate the flagship cryptocurrency, as mentioned by crypto analyst Ali Martínez. bitcoin-mvrv-suggests-rally-may-have-more-room-grow/” rel=”nofollow”>bitcoin market value compared to realized value (MVRV) The 90-day index indicates that it is still in an “insider buying zone.”
At the time of writing, bitcoin is trading at around $63,400, down more than 1% in the last 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
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btc price struggles to hold $64,000 | Source: BTCUSD on Tradingview.com
Featured image by Born2Invest, chart by Tradingview.com
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