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After returning to the heights of $70k on May 21 and May 27, BTC dropped by $2k to trade under $68k over the past 24 hours. The retest of the $68k resistance on the four-hour timeframe yielded a price rejection at the level, signaling that sellers could be gaining the upper hand.
While BTC’s market structure remained bullish on the four-hour and daily timeframes, this bearish pullback could produce short term selling opportunities for intraday traders.
Sellers Primed to Extend Price Correction
The outflow of capital from BTC was marked by the Chaikin Money Flow (CMF) hitting a negative value of -0.06. Accompanying this capital outflow was a move by the Relative Strength Index (RSI) continuing to stay under the the neutral 50.
With a lack of buying pressure along with capital outflows, sellers look favourites to extend the short term dip. Short traders can look to profit at $64k to $66k, as these are likely recovery price points, if the dip extends.
Alternatively, buyers can mount a strong pushback, if price breaks above the $68k resistance and closes a four-hour or daily candle above the level.
Mixed Signals on Bitcoin ETF
Over the past 24 hours, the net inflow for Bitcoin Spot ETFs was $28.3224 million. This was according to data by Sosovalue.
The Grayscale ETF (GBTC) had a single-day outflow of $31.065 million but BlackRock’s ETF (IBIT) and Fidelity’s ETF (FBTC) made up for the shortfall with inflows of $24.5639 million and $17.6766 million.
The mixed signals in the spot ETF market could signal investors taking a more cautious approach in the short term, due to the price corrections.
Blockhead
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
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