Bitcoin faced significant downward pressure this past week due to concerns surrounding demand and ETF inflows. The leading cryptocurrency, BTC, is currently headed for its second consecutive week in the red, slipping below a crucial support level of $65,000. With a decline of over 12% from its peak, it appears that the bears are firmly in control.
Spot Bitcoin ETFs have been experiencing continuous outflows following the failure of the digital asset to surpass the $72,000 resistance level last week. Recent data indicates that all ETFs collectively saw net outflows of $145.9 million, with the Fidelity Wise Origin Bitcoin Fund (FBTC) leading the pack.
The outflows gained momentum after the Federal Reserve announced a hawkish interest rates decision, maintaining rates in the range of 5.25% to 5.50% and hinting at a possible cut later in the year. Furthermore, Bitcoin’s value has declined as reports reveal that major mining companies, such as Marathon Digital and Riot Platforms, have been consistently offloading their holdings for the past 33 days.
Analyzing Bitcoin’s price prediction, the cryptocurrency exhibited a golden cross pattern back in March 2023, signaling a bullish trend as the 200-week and 50-week Exponential Moving Averages (EMA) intersected positively. Maintaining stability above these averages, Bitcoin has also formed a cup and handle pattern, indicating a potential bullish continuation. The current consolidation phase might be a part of the formation of the shoulders segment.
As a result, there is a strong possibility of Bitcoin experiencing a bullish breakout in the near future, especially if the price surpasses the year-to-date peak of $73,500. However, it is essential to consider the risk involved, as Bitcoin has formed a minor double-top pattern at $72,473, which is typically viewed as a bearish indicator. In such a scenario, the cryptocurrency could potentially retreat and retest its neckline at $56,578, representing a 12.65% decrease from its current level.