Price Analysis

Bitcoin Price Analysis: ETF Slowdown To Blame For BTC’s Plunge Below $62,000?

Bitcoin price analysis: Pressure mounts in the crypto market as BTC slides below $62,000 support, causing headwinds for altcoins.
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Bitcoin Price Analysis: ETF Slowdown To Blame For BTC’s Plunge Below $62,000?

Highlights

  • Bitcoin price risk falling below $60,000 in search of a post-halving bottom.
  • BTC ETF outflow volume improves to $51 million after topping $81 million on Monday.
  • Hong spot ETFs expected to increase demand for Bitcoin and trigger a post-halving rally.

Bitcoin price analysis: The largest digital asset is on the verge of breaking a crucial support level, triggering further losses at May’s outset. Bitcoin’s market doldrums started just before halving but continued after the event, denying bulls of another push above the $70,000 mark.

As Bitcoin descended from its post-halving peak above $67,000, the entire crypto market slashed the gains accrued in March and part of April with some altcoins almost erasing all the progress made in Q1.

Bitcoin price hovered at $61,210 during US business hours on Tuesdays, down 1.8% in 24 hours, 7.7% in seven days, and 13% in a month, according to data from CoinGape and CoinGecko.

Bitcoin is the most dominant digital asset, at 51% of the entire crypto market value. It commands over $1.2 trillion in market cap and a 24-hour trading volume of $29 billion.

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Bitcoin Price Analysis: Will Bitcoin Drop Below $60,000 This Week?

Bitcoin price appears to be balancing at the high of a high cliff. With the protection $62,000 protection that bulls depended on since last week obliterated, it is a matter of time before BTC retests the next key level at $60,000.

Key technical indicators highlighted a tweaking technical structure, increasing the probability of declines to and possibly below $60,000. A sell signal from the Moving Average Convergence Divergence (MACD) indicator encourages traders to focus on shorting BTC in the short term.

Bitcoin price today chart | Tradingview

Should the 20-day Exponential Moving Average (EMA) cross below the 50-day EMA forming a death cross pattern, the path of least resistance might remain downwards this week.

The Relative Strength Index (RSI) has shown a consistent downtrend since the peak in March when Bitcoin topped historical highs of $73,837. At 38 and still sliding, the RSI reinforces the bearish grip.

Losses may overshoot support at $60,000 and reach out for a retest of lower levels including $56,000 and $52,000, respectively. Trading these levels would worry retail investors but some may take the opportunity to buy BTC at a discount.

Such a drop may also represent the bottoming of Bitcoin price before the trend trend eases into the bull run.

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Bitcoin ETF’s Slowdown Weighs Prices Down

The uptake of ETFs after their approval in January was the biggest force behind Bitcoin price rally to new all-time highs. However, the bullish trend waned weeks ahead of the halving in April, leaving Bitcoin.

As discussed on Monday, the total daily net outflow had increased to $81 million, led by Grayscale’s GBTC’s withdrawals. The outflow volume had slowed to $51 million on Tuesday, bringing the cumulatively net inflow to $11.94 billion according to data by SoSoValue.

Bitcoin ETF stats

The impact of the ETF on BTC price cannot be overemphasized seeing that it improves sentiment for digital assets in the market. A turnaround in the volume in the green is expected to pamper the trend and ignite new buy orders from investors and traders currently sitting on the sidelines.

Moreover, Bitcoin ETFs are expected to start trading in Hong Kong, a financial hub in Asia. Coupled with the post-halving impact on the supply of Bitcoin, price may start to gain momentum in May, reaching record highs.

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John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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