The price of Bitcoin remained steady on Tuesday, even as outflows from its spot exchange-traded funds (ETFs) showed a slowdown for the first time since December 18.
Summary
- Bitcoin price stayed near the $87,000 mark on Tuesday.
- Significant reductions in outflows from spot Bitcoin ETFs were noted over the past 24 hours.
- A symmetrical triangle pattern is developing on the daily chart.
As per data from SoSoValue, the 12 spot Bitcoin ETFs experienced net outflows of $19.29 million on Monday, December 29, concluding six consecutive days of outflows exceeding $100 million, totaling around $1.1 billion.
Leading the outflows was Invesco’s BTCO, with redemptions amounting to $10.41 million, followed by BlackRock’s IBIT and ARK 21Shares’ ARKB with outflows of $7.92 million and $6.66 million, respectively. Conversely, Fidelity’s FBTC partially offset these outflows by attracting $5.7 million, while other ETFs recorded “zero” outflows that day.
This deceleration in outflows suggests that institutional fatigue may be waning, paving the way for renewed capital inflow if market conditions remain stable.
Previously, Bitcoin peaked at an unprecedented $126,080 in October, primarily driven by substantial inflows into its spot ETFs over the preceding months. Since then, roughly $4.6 billion has exited these investment vehicles.
As institutional investors and major capital allocators tend to influence the dynamics of these regulated vehicles, their net flow patterns play a crucial role in determining price direction, liquidity, and the overall market risk appetite.
In other news, some analysts have noted that long-term Bitcoin holders have ceased selling their assets for the first time since July, as of December 29.
Analyst Ted Pillows commented that this reduction in selling pressure may assist in reversing current trends.
“Things are looking good for a relief rally here,” he stated.
Other market analysts shared a similar outlook.
“Bitcoin will soon reach its bottom. A relief rally is imminent…Prepare yourselves,” noted Crypto Caesar.
On the daily chart, Bitcoin price has been tracing a symmetrical triangle pattern since mid-November of this year. This pattern is marked by two converging trendlines creating a horizontal triangle shape, indicating a consolidation phase prior to a possible breakout.
A breakdown from the lower trendline is likely to lead to further declines, while a breakout from the upper trendline has historically been followed by significant rallies.
At the time of writing, BTC price was trading nearer to the lower trendline, indicating that the asset is nearing a potentially critical zone.
Momentum indicators, while showing a slight positive shift, remain close to neutral levels, suggesting a possible phase of consolidation.
Thus, new institutional inflows could be the necessary catalyst for a structural recovery.
Traders will keep a close eye on the $86,000 psychological support level, as a drop below could trigger a fall to the November low at $82,175.
Conversely, $91,500, aligning with the 23.6% Fibonacci retracement level drawn from the October high to November low, will be a key resistance level to monitor.
Disclosure: This article does not constitute investment advice. The content and materials presented on this page are intended for educational purposes only.
