Bitcoin's drop below $63,000 has provided a clearer view of the support and resistance levels to keep an eye on that will lead to next month's halving.
Bitcoin (BTC) and cryptocurrency analyst Ali-Charts identified three critical prices that serve as support levels for the world's largest digital asset. According to the on-chain observer, citing Glassnode data, $61,100, $56,685, and $51,530 should cushion further Bitcoin declines.
Conversely, $66,990 and $72.88 emerged as the following resistance levels to break after BTC hit a new all-time high on March 14, according to CoinGecko. The cryptocurrency hit a high of $73,737 after several weeks of massive inflows into US spot Bitcoin ETF products.
BTC daily chart | Source: CoinGecko
Bitcoin is down 6%, spot BTC ETFs are seeing negative daily inflows
BTC's 6% decline on March 19 followed its first one-day net outflow since the end of last month. Although BlackRock's BTC ETF raised $451 million, investors sold $642 million worth of Grayscale's GBTC, according to Soso Value. March 18 marked the largest GBTC exit to date, confirmed ETF expert Eric Balchunas.
Price action resulted in net outflows of $154 million as eight other issuers attracted less than $20 million each on the day. The Franklin Templeton, Invesco Galaxy and WisdomTree funds recorded net inflows of $0 in one day.
Spot BTC ETF Flows | Source: SoSo Value
Although the numbers differed from the consecutive inflows previously recorded, spot BTC ETFs still accumulated 4.2% of the available Bitcoin supply in three months of trading. Nine funds have over $20 billion in assets under management, led by BlackRock with more than 203,000 BTC, worth nearly $16 billion.
Veterans like Balchunas also predict an expansion in spot BTC ETF demand as more institutional players allocate capital and support exposure to the asset class. Wall Street asset managers such as Merrill Lynch and Bank of America's Wells Fargo have added spot Bitcoin ETFs to their offerings, reversing an earlier decision not to allow such funds for clients.
This is related to what issuers tell me about advisors' clients: so far it's only those who are already interested in BTC, it's “a handful” of early adopters who inquire and then make allocations. The consultants are not yet courting the rest of their customers. All of these flows come from inbound traffic.
— Eric Balchunas (@EricBalchunas) March 18, 2024
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