Bitcoin
Crypto Analyst Says Bitcoin Should Hold Above $51,800 as ETF Outflows Trigger Drop
O Bitcoin price continues to trend below $60,000 as a 20% decline triggered a brutal market-wide crash. This exposed several critical support points for the cryptocurrency, some of which the price has already fallen below. In light of this, a crypto analyst known as Norok has revealed the level to which BTC price must not fall to maintain its upward trend.
Bitcoin price expected to stay above $51,800
On a analysis posted on the TradingView website, crypto analyst Norok revealed that $51,800 is now the most important support level for Bitcoin. Norok highlighted that Bitcoin has since returned to its last support level that was last seen in December 2023, making this a crucial support.
However, the support that was built by the bulls at the $62,000 level was broken by the bears and has now been turned into resistance. However, the crypto analyst does not believe that the price of Bitcoin has turned bearish despite the crash that has rocked the crypto market.
To make Norok pessimistic, he stated that the BTC Price it would have to break below support at $51,800. According to him, such a move will invalidate any bullish thesis in play for Bitcoin, ending the 2023-2024 uptrend.
Source: TradingView.com
In the short term, Norok identifies $56,900 as a level that bulls should hold. He explains that this could help reinforce the current uptrend. “The price should hold here at this support and then it could recapture the cloud to resume the uptrend,” said the crypto analyst. “This is a highly decisive moment in price action today.”
BTC suffers as a result of ETF outflows
One of the main drivers of Bitcoin’s price decline in recent weeks has been the shift in inflows to Outflows in Spot Bitcoin ETFs. Since these ETFs require issuers to hold Bitcoin to support the assets they are selling to investors, the flows are incredibly bullish as these issuers have started purchasing BTC to fulfill this requirement.
However, with investors starting to withdraw their funds, the reverse has happened, leading to high selling pressure in the market. Spot Bitcoin ETFs have already recorded six consecutive days of outflow trading, reaching an all-time record outflow of US$563.7 million on Wednesday, according to data from Coinglass.
Source: Coinglass
If these outflows continue, then the BTC Price could continue to decline, and at the current pace, the pioneering cryptocurrency could test Norok’s $51,800 soon. However, a shift towards inflows would mean issuers would have to buy BTC and this could translate into a price recovery.
BTC price pushes to $59,000 | Source: BTCUSD on Tradingview.com
Featured image of Kiplinger, chart from Tradingview.com