Bitcoin under pressure: Healthy correction or impending trend reversal?

Bitcoin under pressure: Healthy correction or impending trend reversal?

Bitcoin is showing signs of decline after an impressive run-up and is currently being sold by investors, depressing the price. Loud boerse-express.com Net outflows of $91.4 million affected the Fidelity Bitcoin ETF. While other major ETF providers did not report any significant capital movements, the situation on the market remains tense.

Technical indicators suggest that the Bitcoin market is in a critical phase. Although the MACD indicator shows a bullish underlying trend, weakening histogram bars indicate declining purchasing power. The RSI is at 67, signaling overbought conditions and suggesting impending consolidation.

Development of prices and market psychology

The support level for Bitcoin is at $100,000, while the next support below is located at $90,000. The resistance at $105,000 could lead to new all-time highs if broken. Currently, the correction is viewed as a healthy consolidation within an overarching uptrend. However, future developments remain uncertain; It remains to be seen whether the bulls have enough strength to reach $105,000 or whether a longer sideways phase is imminent.

Additionally, the Altseason Index, which has fallen to 22, makes it clear that it is more of a “Bitcoin Season” without significant capital flows into altcoins. This market behavior is accompanied by reduced trading volumes and cautious ETF flows, indicating some market hesitation.

Significant inflows into Bitcoin ETFs

However, a notable inflow of over $555 million into U.S. spot Bitcoin ETFs was reported on Monday, marking the largest inflow into these funds in more than four months, as reported deraktionaer.de reported. The 11 spot Bitcoin ETFs trading in the U.S. recorded a net $555.9 million as of October 14. Nate Geraci, president of The ETF Store, called the day a “monster day” for spot Bitcoin ETFs, with net inflows over the past ten months approaching $20 billion.

What is noteworthy is that these inflows come mainly from advisors and institutional investors. BlackRock CEO Larry Fink expressed optimism about digital assets and Bitcoin as a legitimate asset class. He highlighted that the future of digital assets depends not only on regulation, but also on aspects such as liquidity and transparency.

After a price jump of over five percent on Monday, the Bitcoin price fell by around one percent on Tuesday and remains close to the $67,000 mark. This limit is considered the upper limit of a flag formation that has existed since March. The RSI indicator is currently at 62 and indicates further upside potential.

The upcoming US election is expected to cause increased volatility in the short term, which further complicates market conditions.