The Bitcoin price has hit a standstill at $105,000, as increasing spot ETF outflows contribute to a shift in market sentiment towards neutrality. On June 8, Bitcoin (BTC) was trading at $105,550, reflecting a 5% increase from its weekly low but still 5.75% below its record year-to-date high of $111,900.
This recent plateau can be attributed to a series of profit-taking actions by investors following a spectacular surge in May, where Bitcoin reached a remarkable high of $111,900, translating to a staggering 50% increase from April’s lows. Furthermore, data indicates that exchange-traded funds (ETFs) have experienced significant outflows, totaling $128 million in the past week, compounded by a prior outflow of $157 million. This marks the first occurrence of consecutive weekly outflows since April.
Market sentiment, which is crucial for investment strategies, has also taken a shift. The widely referenced fear and greed index has settled at a neutral level of 56, indicating a cautious outlook among crypto investors. Additionally, troubling reports have surfaced regarding the Chinese government’s potential plans to sell its seized Bitcoin, which comprises 190,000 coins valued at over $20 billion.
Despite the hurdles, Bitcoin is not without its potential catalysts that could drive prices higher in the coming weeks. Notably, there has been a significant drop in the supply of Bitcoin available on exchanges, which has plummeted from 1.35 million to 1.18 million just this month—an even more dramatic decrease from over 3.5 million in 2020. Additionally, a growing number of corporate entities are ramping up their Bitcoin acquisitions, with firms such as Strategy planning to invest over $2 billion and Trump Media set to raise up to $12 billion for Bitcoin purchases.
From a technical perspective, Bitcoin’s price movements reveal a promising cup-and-handle pattern, indicating potential upward momentum. The coin has managed to remain above its 50-day and 200-day moving averages, which serve as substantial support lines, and also stands above a crucial S/R pivot point according to the Murrey Math Lines tool. Thus, a recovery could be imminent, with short-term targets around $109,477 and a possibility of reaching $150,000 if conditions remain favorable.
