Bitcoin ETF Outflows Hit Record $1.5B: What Does This Mean for BTC’s Future?
Bitcoin ETF – Bitcoin (BTC) has experienced a significant surge, briefly touching $98,000 on December 25, as traders celebrated the arrival of a well-timed Christmas Santa rally. The market saw $4,000 daily gains, signaling renewed optimism as the holiday period began.
Bitcoin’s Price Action and Bullish Sentiment
Recent data from Cointelegraph Markets Pro and TradingView indicated a cooling of Bitcoin’s price volatility, as the cryptocurrency stabilized around $98,145. Notable trader Skew expressed cautious optimism, pointing out that Bitcoin was retesting a critical trend that had driven its rise from $68,000 to $108,000. He highlighted a “clean” bullish relative strength index (RSI) divergence on the 4-hour chart, signaling that attempts to push BTC/USD lower had failed.
Key Support and Resistance Levels for Bitcoin
Keith Alan, co-founder of Material Indicators, emphasized the importance of the 21-day and 50-day simple moving averages (SMA), which are currently positioned around $99,600 and $94,650, respectively. Bitcoin has been holding the 21-day SMA as support since mid-October, while the 50-day SMA continues to offer a strong floor. Alan questioned which of these levels would break first, as Bitcoin remains caught between these two critical support zones.
Bitcoin Outflows and US ETF Concerns
A shadow over Bitcoin’s recent price surge has been the sustained outflows from US spot Bitcoin ETFs. This week, outflows hit record levels, with $1.5 billion leaving the ETF products in just four days. On Christmas Eve, the total outflow was reported at $338.4 million. Despite these outflows, crypto investor Satoshi Stacker noted that the markets were closed for Christmas, offering Bitcoin a brief respite from the recent selling pressure.
Increased Bitcoin Demand from South Korea
Onchain analytics platform CryptoQuant reported a positive outlook, with an increase in BTC exposure among short-term holders (STHs), particularly from South Korea. The Korean Premium, also known as the Kimchi Premium, surged to a local high of 5.12, indicating strong demand for Bitcoin in South Korean markets. This suggests that new investors are being attracted to Bitcoin, contributing to the ongoing rally.
Bitcoin’s recovery and the Christmas rally demonstrate resilience in the market, but traders are keeping a close watch on key support levels and global demand trends.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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