The recent notable cash outflows from US-based spot Bitcoin ETFs have increased overall crypto fear leading to ongoing altcoin selloff.
After closing Monday on a long-legged Doji candlestick, Bitcoin (BTC) price opened Tuesday on a bearish outlook. The flagship coin briefly reached as low as $64k on Tuesday during the early Asian session, but has since stabilized around $65,600 during the London session. The notable Bitcoin dip in the past 24 hours resulted in heavy crypto liquidation, mostly involving long traders.
According to market data provided by CoinGlass, out of the $464 million liquidated in the leveraged crypto market, around $402 million involved long traders. The heightened crypto volatility has pushed more traders and investors in the stablecoins space as shown by the high daily average trading volume of more than $63 billion in USDT alone, which is higher than that of Bitcoin and Ethereum combined.
Spot Bitcoin ETFs Cash Flows Signals More Pain Ahead
As Coinspeaker reported, the United States-based spot Bitcoin ETFs have registered notable cash outflows in the recent past following the recent hawkish Fed meeting. On Monday, US spot Bitcoin ETFs registered a total cash outflow of about $145 million.
Interestingly, Grayscale’s GBTC only had an outflow of about $3 million. The largest losers on Monday were Fidelity’s FBTC with an outflow of about $92 million and Ark’s ARKB with a total cash outflow of about $50 million.
The rest of the spot Bitcoin ETFs, led by BlackRock-backed iShares Bitcoin Trust (NASDAQ: IBIT), registered a zero net cash flow on Monday.
As a result of the notable decline in spot Bitcoin cash inflows amid the low levels in active addresses, most traders have turned bearish in the short term.
What Next for BTC Price Action?
After struggling to rally above $72k in the past four months, Bitcoin price is likely to continue in a bearish outlook until the bulls regain control. From a technical standpoint, Bitcoin price could find a solid support range between $57k and $61k in case of further capitulation.
However, a popular crypto analyst alias Credibull Crypto believes the bottom for the ongoing Bitcoin correction is likely in, and a market rebound will happen in the near term. Meanwhile, the crypto analyst noted that Bitcoin price must consistently close above $67k in the near term to invalidate further market correction.
There's a chance our $BTC bottom is in with this SFP.
Below is what I am watching for now.
Yes, we can still technically go lower into the "dream long" zone below, but as I've previously said it would not surprise me to see that zone front run.
That being said, you sell the… pic.twitter.com/cI6moqbadJ
— CrediBULL Crypto (@CredibleCrypto) June 18, 2024
Bigger Picture
According to analysts from Santiment, the increased negative crowd sentiments on the altcoin industry could give patient traders a chance to buy the dip in preparation for an inevitable parabolic rally. Moreover, the listing of spot Ether ETFs in the United States is expected in July, which has increased the number of unique addresses in the Ethereum ecosystem.
📊 Bitcoin holders have just had their biggest 3-day drop in non-empty wallets since just prior to the March 14th all-time high. Unlike then, BTC has been sliding, provoking traders to liquidate for fear of further drops. Meanwhile, Ethereum wallets keep growing in number. pic.twitter.com/UIfXLkJ1HH
— Santiment (@santimentfeed) June 18, 2024
Ultimately the highly anticipated Altseason will be triggered by a reversal in the Bitcoin dominance, which is currently hovering around 56.18 percent.
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