Bitcoin's market continues to face a rigorous test as it maintains a consistent downtrend, currently priced at $63,663.47. Despite the potential for a reversal, Bitcoin struggles under the weight of selling pressure across various time frames, reflecting a market fraught with caution and bearish momentum. Today's session saw Bitcoin attempt a rally, only to retreat from the near 50-day EMA, plummeting further to a low of $63,501.
The technical landscape for Bitcoin remains challenging as the 1-hour and 4-hour charts display a clear pattern of lower highs and lows, signaling sustained selling pressure. The daily chart echoes this sentiment, with Bitcoin having fallen from a monthly high of $71,958 to today's low. This pattern of sharp declines underscores the intensity of the selling, pushing Bitcoin's price towards critical support levels around $63,000.
Momentum oscillators present a mixed yet leaning bearish scenario. The Relative Strength Index (RSI) at 36 suggests oversold conditions which could tempt some traders looking for entry points around the $63,000 to $63,500 range, hoping for a bullish reversal. However, the presence of strong bearish signals from other indicators like the MACD, which shows a bearish divergence, and the Commodity Channel Index (CCI) at -134, reinforce the cautious stance among investors.
Moving averages further indicate a bearish outlook, with most short to mid-term EMAs and SMAs trending downwards. Notably, the 200-period EMA and SMA offer a glimmer of hope, presenting potential long-term support that could be the foundation for any future bullish reversal.
Spot bitcoin ETFs in the U.S. experienced their fifth consecutive day of outflows on Thursday, resulting in total losses of $900 million for the week, the highest since late April. According to data from SoSoValue, the 11 listed ETFs lost $140 million on Thursday, with trading volumes reaching $1.1 billion. Grayscale's GBTC, which has predominantly seen outflows since its conversion to an ETF in January, led with $53 million in outflows, followed by Fidelity's FBTC with $51 million. BlackRock's IBIT, the largest ETF by assets, was the only one to record net inflows, adding $1 million. The other ETFs reported no net change.