Although Bitcoin once fell below US$54,000 on Friday, according to SoSo Value data , the total net inflow of the US Bitcoin spot ETF yesterday (5th) was US$143 million, which not only reversed the outflow trend of the previous two days, but also reversed the outflow trend of the previous two days. The amount reached a new high in a month.
It can be seen that when the Bitcoin market fell recently, more investors bought Bitcoin through spot ETFs.
Analyst: This drop is a flight for novice investors
Analyst Cauê Oliveira pointed out on the 4th that Bitcoin, worth approximately US$2.4 billion and held for only 3 to 6 months, was transferred and sold in large quantities during the price decline.
These Bitcoins may have come from investors who bought at the beginning of the year and wanted to speculate on ETFs and halvings, acting like short-term investors, causing selling pressure on Bitcoin.
Cauê Oliveira further said that entities held for more than a year have yet to show signs of significant selling, showing that true long-term holders remain committed. It could be said that it was these long-term holders or related institutions who increased their positions during this decline.
Possible support points for Bitcoin
As for where Bitcoin will go next, is the current market situation a false rebound? CryptoQuant analyst Axel Adler Jr. pointed out on the 4th that Bitcoin’s key support may be well below the current price, around $47,000. He said:
This level is 25% below the average purchase price of STH, which will act as a strong resistance and an important point for the market to shed new buyers in the correction.
Therefore, it cannot be ruled out that the current rebound will hit the bottom again.
Another analyst, CryptoCon, published an article today pointing out that the price of Bitcoin has rebounded from the Magic Bands level 2 level of $54,431. The current level 3 target of $92,908 is still valid, and firmly believes that BTC has not fallen below the level 2 support. I believe that eventually The top of the cycle has not yet arrived.
However, he also said that the price needs to regain $61,300 before Sunday to regain key support levels such as the 20-week EMA and maintain the bullish trend.
