The post Has Bitcoin Established a Local Bottom Yet? CryptoQuant Reveals appeared first on Coinpedia Fintech News
Bitcoin (BTC) price has stabilized above $60,550 in the past four months, despite the heightened fear of further crypto capitulation. The flagship coin traded around $61,377 on Wednesday, after dropping from around $70k in the past few weeks. Positive Cash Inflow to Spot Bitcoin ETFs After more than two weeks of sustained cash outflows, the …
The post Has Bitcoin Established a Local Bottom Yet? CryptoQuant Reveals appeared first on Coinpedia Fintech News
Bitcoin (BTC) price has stabilized above $60,550 in the past four months, despite the heightened fear of further crypto capitulation. The flagship coin traded around $61,377 on Wednesday, after dropping from around $70k in the past few weeks.
Positive Cash Inflow to Spot Bitcoin ETFs
After more than two weeks of sustained cash outflows, the United States’ spot Bitcoin exchange-traded funds (ETFs) registered a small cash inflow, of $31 million. Fidelity’s FBTC and Bitwise-backed BITB registered a total cash inflow of about $49 million and $15 million respectively.
Grayscale’s GBTC registered a cash outflow of about $30 million on Tuesday, while BlackRock’s IBIT did not record any cash flow.
Local Bottom?
According to CryptoQuant’s Gustavo Faria, the current Bitcoin’s market structure suggests a possible local bottom. Further deconstructing the on-chain data, CryptoQuant noted that short-term Bitcoin holders are experiencing negative average profitability, a popular sign of a local bottom.
Moreover, the Bitcoin Futures open interest market has dropped by about $3 billion in the past three weeks amid near-zero funding rates.
Meanwhile, investors will have a clear picture of the U.S. economic outlook in the next two days.
On Thursday, investors will know the US GDP and initial jobless claims data, and later on Friday, inflation data (PCE) will be released.
“A significant factor influencing price action in recent months has been U.S. macroeconomic data, given the uncertainty about the future of American monetary policy, which affects investors’ risk appetite,” CryptoQuant reported.
Midterm Price Targets
Bitcoin price could easily close the month trading around $61k. However, a consistent close below $60k in the coming weeks will push the flagship coin towards $50k. However, the weekly Relative Strength Index (RSI) is approaching the 50 percent level which could lead to a market rebound ahead.
