Bitcoin price stalls as spot ETFs bleed for second week
Bitcoin price has stalled at $105,000 amid increasing spot ETF outflows and as sentiment among investors turned to neutral.
Bitcoin (BTC) was trading at $105,550 on Sunday, June 8, up by 5% from its lowest point last week. It remains 5.75% below its highest point this year.
Bitcoin has wavered recently because of investor profit-taking. In May, its price surged to a record high of $111,900, a 50% surge from the lowest level in April.
BTC also wavered as data pointed to outflows from exchange-traded funds. SoSoValue data shows that these ETFs shed $128 million last week after shedding $157 million a week earlier. It was the first back-to-back weekly outflows since April.
Further data shows that sentiment among crypto investors has turned neutral this month. The closely-watched fear and greed index has dropped to the neutral point of 56.
Bitcoin has also wavered after reports emerged that China was considering selling its seized coins. Data shows that it holds 190,000 coins worth over $20 billion.
Still, Bitcoin has two key catalysts that may push it higher in the coming weeks. First, the chart below shows that the supply of Bitcoin on exchanges has been in a freefall this month and currently stands at 1.18 million, down from 1.35 million when the month started. It has fallen from over 3.5 million in 2020.
Second, more companies are intensifying their Bitcoin purchases. Strategy is raising over $2 billion more to buy Bitcoin, while Trump Media has filed to raise up to $12 billion for purchases. Other firms like MetaPlanet and The Blockchain Group are intensifying their purchases.
Bitcoin price technical analysis
The other Bitcoin catalyst is its solid technicals. The daily chart shows that it has slowly formed a cup-and-handle pattern and is completing the handle section.
Bitcoin has also remained above the 50-day and 200-day moving averages, which provide substantial support. It has also remained above the major S/R pivot point of the Murrey Math Lines tool.
Therefore, the coin will likely bounce back in the coming weeks. The initial target is the cup’s upper side at $109,477. After moving above the all-time high of $111,900, it may surge to $150,000.
