Bearish view
- Sell the BTC/USD pair and set a take-profit at 84,000.
- Add a stop-loss at 90,000.
- Timeline: 1-2 days.
Bullish view
- Buy the BTC/USD pair and set a take-profit at 90,000.
- Add a stop-loss at 84,000.
Bitcoin price remained in a consolidation phase on Monday as traders waited for a major catalyst. The BTC/USD pair was trading at 87,468, inside a range it has been stuck at in the past few day.
Bitcoin ETF Outflows and Potential Rotation to Gold and Silver
The BTC/USD pair has retreated in the past few days as it experienced substantial headwinds. One of them is that American investors have continued to sell their spot Bitcoin ETFs in the past few weeks.
Data shows spot Bitcoin ETFs had outflows of over $175 million on Friday, bringing the cumulative weekly outflows to over $506 million, much higher than the previous week’s $497 million. These outflows have brought the net cumulative inflows of Bitcoin ETFs to $56 billion, down from over $64 billion a few months ago.
One possible reason for the ongoing Bitcoin ETF outflows is that investors are rotating to the better-performing gold and silver ETFs. The two metals have been in a strong uptrend in the past few months and are hovering at their all-time highs, with their ETFs seeing robust inflows.
Top Regulated Brokers
Bitcoin price has also remained in a tight range as concerns about potential market manipulation remain. Recently, top companies in the industry like Wintermute and Binance have continued to dump Bitcoin, especially when it rebounds.
The main catalyst for Bitcoin this week will be the Federal Reserve minutes, which will come out on Tuesday. These minutes will provide more information about the last meeting in which officials decided to cut interest rates by 0.25%.
BTC/USD Technical Analysis
The daily chart shows that Bitcoin price has remained in a tight range in the past few days. This consolidation has resulted in the formation of a symmetrical triangle pattern, which is part of the bearish pennant.
The coin remains below the 50-day and 100-day Exponential Moving Averages (EMA) and 107,400, the neckline of the double-top pattern. It has also remained constantly below the Supertrend indicator.
Therefore, the pair will likely have a bearish breakout, potentially to the November low of 80,600. The bearish outlook will become invalid if it moves above the key resistance level at 94,000.
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