The bitcoin value continued its consolidation as the fear and greed index remained at the neutral point and the Z score and feeling of market value decreased by three months.
Bitcoin (BTC), the largest cryptocurrency by volume, lives in a tight range. On Saturday, the price increased by $ 97,600 – 1.2%.
Why the price of bitcoin has stopped
This price action is being taken as investors remain on this edge waiting for the next catalyst. Sosoly data shows that the demand of American investors for the spot bitcoin ETF has decreased.
Pure outflows of funds in the last four days were more than $ 650 million.
On-chain analyst Ali Martinez commented on this trend on Saturday,
When Spot Bitcoin ETFs removed BTC, it means that they are selling bitcoins from their holdings, which may create price pressure, signal investor’s outflow and increase market volatility.
The possibility of redemption, institutional portfolio shift, or fund ribbalancing is likely to run sales. If many ETFs sell simultaneously, this value can increase swings, especially in a period of low-learn matter.
Additionally, arbitration traders can take advantage of the discrepancies between the prices of ETFs and the spot price of bitcoin.
Who is guilty?
Bitcoin stopped between the ongoing geo -political risks and capacity for high interest rates. Investors hope that President Donald Trump’s tariffs will promote a trade war and cause market instability.
This will also promote high inflation as companies increase prices in US inflation figures It was issued this week that the headline consumer inflation data increased from 2.9% in December to 3% in January, while the core CPI went from 3.2% to 3.3%.
When the Federal Reserve Hawkish occurs, bitcoin and other risky property reduces the market. In its testimony of the Congress this week, Fed Chair Jerome Powell indicated that the Central Bank would remain stable until inflation collapses.
Investors are irritable
The closely seen fear and greed index have fallen from the extreme greed region of 90 to a fee zone of 40 in 2024.
In addition, MVRV’s Z score (market price for realization price) indicators 3 of 3 years has fallen to 2.49. The MVRV indicator is a popular device used to measure the evaluation of the crypto coins. It does so that the circulating market value is reduced by reducing the actual market value and then it is standardized. An MVRV figure of less than 3.5 indicates that a crypto coin has not been evaluated.
Historically, a decline in fear and greed index, MVRV, and futures open interest indications indicate potential accumulation by smart money investors.
BTC Price Technical Analysis: Bitcoin needs to be cleaned $ 108,440
The daily chart suggests that the price of bitcoin in the last few days is less than $ 100,000. It has also been built in a tight border in the last two months.
Bitcoin 50-day exponential moving averages, falling down from a recession symbol. Additionally, it has formed a double-top chart pattern at $ 108,440.
Therefore, bitcoin’s approach is a slowdown as long as it is below the double-top level. If it goes above $ 108,440, the recession approach will be invalid, as it will invaluate the double-top point.
A drop below the neckline point at $ 89,055 will point to a more negative side, with the next support level $ 73,613.
Meanwhile, atherium, currently trading below $ 2,693.91 – 0.3%.
