Bitcoin holds above $62,000 despite mild decrease in ETF inflows
- Bitcoin price halts the recent positive movement, holds above key psychological level of $62,000.
- On-chain data suggest neutral sentiment among BTC’s traders.
- US spot Bitcoin ETF inflows experienced a slight decline week-on-week.
Bitcoin (BTC) halts the recent positive movement and stabilizes above its key psychological level of $62,000 on Monday after a nearly 7.5% rise last week. On-chain data hints at a neutral sentiment among BTC’s traders at a rally in Bitcoin's price as more traders bet on the asset's rise. However, the US spot Bitcoin Exchange Traded Funds (ETFs) experienced a slight decline in inflows week-on-week.
Daily digest market movers: Bitcoin EFTs saw a mild decrease in inflows last week
- Institutional flows saw a mild decrease in inflows last week compared to the previous. According to Coinglass data, the inflow into US spot Bitcoin ETFs decreased slightly from $403.90 million to $397.20 million from the second to the third week of September. This 1.66% fall is small compared to the total Bitcoin reserves held by the 11 US spot Bitcoin ETFs, which total $50.68 billion in Assets Under Management (AUM).
Bitcoin Spot ETF Net Inflow chart
Bitcoin ETF AUM chart
- Coinglass’s Bitcoin long-to-short ratio also stands at 1.0, signaling a neutral sentiment among investors. This ratio reflects bullish sentiment in the market when it is above 1, suggesting that more traders anticipate the asset’s price to rise. The contrary occurs if it is below 1.
Bitcoin long-to-short chart
- Ki Young Ju, founder and CEO of CryptoQuant, an on-chain Data and Analytics company, posted on Twitter, “Bitcoin hashrate dominance is shifting to US mining companies.” Mr Ju also said, “Chinese mining pools operate 55% of the network, while US pools manage 40%.”This shift in Bitcoin hashrate could be a positive sign for Bitcoin as US pools primarily cater to institutional miners in America. In contrast, Chinese pools support relatively smaller miners in Asia.
BTC Mining Pool Hashrate chart
Technical analysis: Bitcoin eyes for $65,000 mark
Bitcoin broke above an ascending trendline and the 100-day Exponential Moving Average at $61,000 on Wednesday and rose 3% in the next four days. BTC’s price halted the recent rally over the weekend but has managed to hold its key psychological level of $62,000. At the time of writing on Monday, it trades at around the $63,340 level.
If the psychological support of $62,000 continues to hold, BTC could continue its upward move and retest its daily resistance level at $65,379.
The Moving Average Convergence Divergence (MACD) indicator supports Bitcoin’s rise, signaling a bullish crossover on the daily chart. The MACD line (blue line) moved above the signal line (yellow line), giving a buy signal on September 12. However, histogram bars, even if in the green above the neutral line zero, are receding, suggesting that upward momentum is fading.
Furthermore, the Relative Strength Index (RSI) on the daily chart is edging lower near the 60 level, reflecting the decrease in the bullish momentum.
BTC/USDT daily chart
However, if Bitcoin fails to find support at around $62,000 and declines to close below its September 17 low of $57,610, it could extend the decline by 3% to retest its daily support of around $56,000.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Recommended Articles
