Bitcoin (BTC), the leading cryptocurrency by market cap, is currently experiencing significant market fluctuations, having failed to sustain its position above the $60,000 mark. At present, Bitcoin is trading around $59,000 after touching an intra-day low of $58,730. This recent dip comes amidst a broader downturn in the crypto market, with the global market cap decreasing by 1.97% over the last 24 hours to stand at $2.1 trillion.
Bitcoin ETFs are seeing a significant uptick in market activity, with inflows rising by 42% to reach $88.06 million on August 21. This surge marks the second day of substantial gains, led by BlackRock’s IBIT which added $55.4 million to its coffers, reaching a total of $20.53 billion in inflows. Following closely, ARK 21Shares’s ARKB contributed an impressive $51.9 million. In contrast, certain Bitcoin funds like Grayscale’s GBTC and Biwise’s BITB recorded outflows, but this did not dampen the overall positive momentum which saw Bitcoin ETF trading volumes escalate to $1.35 billion. This influx of institutional interest, now accounting for 24% of ownership, suggests a bolstered confidence in Bitcoin’s market prospects.
Bitcoin’s Struggle Below $60K: A Sign of Market Caution?
The technical analysis reveals that Bitcoin is navigating through a crucial phase. The Relative Strength Index (RSI) is currently at 47.46, which indicates a neutral market condition but leans towards the bearish side as it approaches the oversold territory. The Moving Average Convergence Divergence (MACD) also supports this sentiment with a bearish divergence, as the MACD line remains below the signal line, suggesting that bearish momentum could continue if Bitcoin does not find substantial buying support soon.
Bitcoin’s price is encountering resistance near the $62,000 mark, with the 50-day and 100-day Simple Moving Averages converging at around $61,300 and $62,900 respectively, indicating significant resistance levels. Should Bitcoin break through these barriers, it could signal a bullish reversal. However, failure to do so may see Bitcoin testing support at lower levels, with immediate support found around $59,000.
Market Sentiment and Outlook
Uncertainties in the global economy and the upcoming US presidential election has made market sentiment very cautious. For this reason, investors are closely monitoring job growth report by the U.S. Bureau of Labor Statistics that may significantly impact market dynamics. The future movements of Bitcoin depend largely on external economic indicators and geopolitical developments, meaning it’s consolidation phase is indicative of a wider market unease.
According to Crypto trading expert Michaël van de Poppe, one important thing is that Bitcoin remained resilient as it maintained crucial support levels at $56k. Although not having broken above $60k yet, there appears to be a bit of optimism surrounding this with a possibility for a bullish reversal if it can clear resistance between $61-62k.However, macroeconomic data regarding employment growth coming up later on from the United States Bureau of Labour Statistics can be decisive and further flaring up recession fears in the broader risk asset market including cryptocurrencies.
