News, Price Analysis

Bitcoin (BTC) Price Teases Below $65k, Signaling Possible Capitulation Ahead

The total cryptocurrency market cap slipped around 3 percent in the last 24 hours to about $2.48 trillion on Tuesday during the early European session. The altcoin industry registered the largest losses after Bitcoin (BTC) price briefly dropped below $65k. As a result, nearly half a billion dollars has been liquidated from the leveraged cryptocurrency market, mostly involving long traders.

The fear of a continued crypto bearish outlook has seen more investors flee the altcoin industry to the stablecoins market. Consequently, Bitcoin dominance has gained around 1 percent in the past 24 hours to hover around 56.18 percent.

Impact of Spot Bitcoin ETF’s Notable Cash Outflows

In the past week, United States-based spot Bitcoin exchange-traded funds (ETFs) have experienced notable cash outflows. On Monday, Fidelity’s FBTC and Ark’s ARKB led in a total cash outflow of about $92 million and $50 million respectively. 

The majority of the spot Bitcoin ETFs led by BlackRock’s IBIT registered a net flow of zero on Monday. As a result, the total net assets under custody in US spot BTC ETFs is about $58 billion and a total traded volume of around $1.2 billion.

The notable cash outflows in the past few days have been attributed to the notable crypto liquidations and the continued bearish sentiments.

Midterm BTC Price Expectations 

Bitcoin price has been trapped in a multi-week consolidation between $61k and $72k in the past four months. Trading around $65,578 on Tuesday, Bitcoin price has slipped below the daily 50 Moving Average (MA) as the Relative Strength Index (RSI) approaches the oversold levels.

In case of continued bearish sentiment, Bitcoin price will find a solid support range between $57k and $60k. Otherwise, Bitcoin price could easily rebound from the current bearish sentiments to a new all-time high (ATH) ahead.

Altseason Ahead

Following the recent approval of spot Ether ETFs in the United States, the listing and trading is set to begin as early as next month. Already, Ether’s supply on exchanges is at an all-time low amid a notable spike in Ethereum’s new wallet addresses.

As Bitcoin dominance slowly grinds to a macro falling logarithmic resistance level below 60 percent, the much anticipated Altseason will materialize in the near term.

Also Read: Bitcoin, Ethereum, And XRP Price Prediction: Is The Bull Rally Over?

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