Bitcoin Price Drop To $60,000 Lingers As ETF Outflows Escalate

Bitcoin price is stuck under $65,000 with immediate support provided by the $64,000 level. An attempt to recoup the losses incurred since the drop from $70,000 lost steam on Wednesday. If selling pressure continues to rise in the US session, BTC may be forced to sweep through lower levels at $62,500 and $60,000 to collect more liquidity to anchor the next rebound.

Bitcoin ETF Outflows Gush As BTC Struggles For Direction

Bitcoin ETFs have been a major contributor to positive market sentiment since their approval in January. The uptake of the products allowing institutional investors to buy BTC on stock exchanges bolstered the rally to an all-time high of around $73,000 in Q1.

Some altcoins surged to new levels in tandem with Bitcoin, with Ethereum peaking above $4,100 and Solana at $206. Most altcoins have seen their values slashed by significant margins since last week, underscoring the dismal performance of the spot Bitcoin ETF in April and part of May.

Over the last few months, analysts at CoinGape have followed the performance of the ETF in correlation to Bitcoin price. The emerging trend is that as outflows surge, Bitcoin plunges or struggles to find direction and in the end consolidates.

Bitcoin price hovered at $64,945 during US trading hours while data from SoSoValue highlighted a $152 million net ETF outflow for June 18. Due to the outflows persistent since last week, after the FOMC meeting and the Federal Reserve’s hawkish stance on interest rate cuts, the cumulative total net inflow has dropped to $14.81 billion.

Should the sentiment fail to recover, the downturn in Bitcoin price may carry on to the end of the week.

Similarly, data by Coinglass, reveals the Bitcoin futures market open interest falling to $36.4 billion from an all-time high of $37 billion. While this is not a major drop, it could mark the beginning of a downtrend. Falling OI is reflective of decreasing interest among traders and often hints at a continued downtrend.

The Next Bitcoin Price Support?

Trading below the $65,000 pivotal level means that sellers have the upper hand. Bitcoin also screams sell as the Relative Strength index drops in the neutral area to 39. If this trend sustains, the decline will intensify to the next support at $64,000.

A sell signal from the Moving Average Convergence Divergence (MACD) indicator backs the bearish landscape. The growing red histograms below the neutral line cast doubts in the hope for an immediate recovery.

Based on the Money Flow Index (RSI) after diving to 23 and heading into the oversold region, the path of least resistance remains downwards.

Therefore, traders can keep in mind the level of $64,000 as the first support while staying open to the possibility of BTC diving to $62,500 and even seeking support at $60,000. It is from these levels that a strong recovery may ensue for a breakout back to $70,000.

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