- Bitcoin formed a small range within the range.
- Bullish confidence has weakened considerably and selling pressure may soon take over.
Bitcoin (BTC) continued to trade between $73k and $60.7k, forming a range.
In an earlier analysis, AMBCrypto reported that bulls need to defend the $64.5k support zone to move above the $66k resistance.
That didn’t happen, instead, we saw rejection at $67k and a move towards $62.8k. This development comes at a time when both whale activity and ETF flows are slowing.
Therefore, the argument for continued short-term consolidation was valid.
The big-picture metrics fueling BTC growth have declined
In a post on X (formerly Twitter), crypto analyst whale panda noted that Bitcoin ETF inflows were negative for the third consecutive day on Friday, April 26.
BlackRock’s ETF IBIT saw zero inflows for the third straight day after receiving its largest inflows earlier this month.
Source: Farside Investors
There seems to be a lack of demand here. Only the Grayscale Bitcoin ETF (GBTC) saw consistent outflows, but a few others like ARKB joined in on April 25.
This was a reflection of the lack of bullish confidence after the halving.
Source: Ali_Charts on X
Crypto analyst Ali Martinez brought another interesting factor to the conversation. The number of whale transactions has been declining since mid-March.
Bitcoin price lost momentum on its higher time frame during the last month.
What do the futures markets tell us about Bitcoin market sentiment?
Source: Coinalize
Open interest in Bitcoin has been decreasing since April 10. This came with a drop in price below $70k which took BTC to $60k and highlighted bearish sentiment. Speculators were not willing to go long.
The funding rate, which was very positive in March, was just over zero in April, once again reflecting speculators’ hesitancy.
Spot CVD climbed higher from March 20 to April 10. This meant that buyers were present in the spot market at the time, giving the price a reason to attempt to rise above $70k.
There has been a continuous downward trend in the last three weeks. Therefore, it was likely that we would see BTC trend downwards, or stay within a range.
Source: BTC/USDT on TradingView
A short-term range was observed between $66.9k and $59.7k (violet). This was at the lower end of the $60k-$73k range within which BTC was already trading.
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The mid-range mark of $63.3k was broken over the weekend, and we could see another drop to $60k later this week.
The RSI on the 6-hour chart was below neutral 50 and indicating bearish momentum. With the lack of demand, it looks like another recession will be upon us soon.
