The US spot Bitcoin ETF issuers have registered four consecutive days of notable cash outflow leading to a bearish outlook for the entire altcoin industry.
After closing August with a bearish outlook, Bitcoin (BTC) price opened September on shaky grounds with increased investors’ fear of further capitulation. The flagship coin slipped over 9 percent last week, thus ending the month below the crucial support range between $58K and $60K. According to the latest crypto market data, Bitcoin price closed yesterday below $58k, thus signaling a further bearish outlook in September.
Moreover, historical data shows that Bitcoin price performed poorly in September, especially after the halving event.
Following the heightened Bitcoin bearish volatility, the altcoin industry was also impacted leading to more than $152 million being liquidated from crypto leveraged traders.
Bitcoin Suffers Low Investor Demand
Bitcoin price has been trapped in a bearish correction mode since mid-March, despite the notable improvement in fundamental aspects. Although some analysts believe Bitcoin price has been forming a bullish flag pattern, which is often attributed to a prior trend continuation, on-chain data analysis shows investors have been fleeing the market.
Bitcoin’s fear and greed index dropped to 26 percent, indicating extreme investors’ fear, as BTC price slipped below $58k.
According to market data analysis from Glassnode, the Exchange Volume Momentum indicator suggests a sustained drop in exchange-related on-chain activities, which reflects lower investor interest.
The Exchange Volume Momentum indicator shows a sustained drop in exchange-related on-chain activity, which usually points to lower investor interest in #Bitcoin and decreased network usage. pic.twitter.com/bBwSwYAt6r
— Ali (@ali_charts) September 1, 2024
Already, the US spot Bitcoin ETFs have been bleeding significantly in the past few days, joining the spot Ether ETFs. On Friday, the US spot BTC ETFs registered a net cash outflow of about $175.67 million and a total traded volume of around $1.54 billion.
The notable cash outflows from ARK 21Shares Bitcoin ETF (ARKB) and Grayscale’s GBTC in the recent past have significantly contributed to the overall bearish outlook. Furthermore, even BlackRock’s IBIT registered zero net cash flows on Friday.
Crucial Midterm Targets
Meanwhile, it is worth considering the fact that Bitcoin supply on centralized crypto exchanges is at multi-year lows. As a result, Bitcoin’s bearish outlook could be ending soon, especially amid the upcoming economic shift in the United States.
The US Fed is expected to initiate the much-anticipated interest rate cuts this month, which will set the pace for the so-called ‘easy money’ period. Nonetheless, some economists believe the anticipated interest rate cuts in the United States could turn into a sell-the-news event in the subsequent weeks.
$BTC is still Moving within a Bullish flag Pattern.
It may test the 54k Support Area again, and it's crucial for the Bulls to defend this level.
If Bitcoin bounces back from the 54k Support, it could Rally up to 68k in September.#Crypto #Bitcoin #BTC pic.twitter.com/uDToFmPCUb
— Captain Faibik 🐺 (@CryptoFaibik) September 2, 2024
From a technical standpoint, Bitcoin price could continue in a falling trend in the coming days to retest the support level above $54K. Furthermore, Bitcoin price is expected to rebound in the fourth quarter and the first half of 2025, which could make the current crypto bull cycle similar to the 2017 bull run.
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