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- BlackRock’s inflows were worth $49.28 million while Grayscale’s outflows were higher at $386 million.
- The EMA indicated a death cross but bulls might try to push the price above $70,000.
- BTC contract liquidation hit $317.55 million, and aggressive short positions might drag the price down.
For the second day in a row, spot Bitcoin (BTC) ETFs hit a negative flow. According to the financial research platform ‘SosoValue’, Grayscale’s ETF GBTC witnessed an incredible outflow of $386 million on March 20. A day earlier, the same ETF registered $443 million in outflows as Bitcoin’s selling pressure intensified.
ETFs Have Stepped Back
On the same day, other ETFs failed to make a mark or cover for the outflow. SoSo Value data, shared by reported WuBlockchain, showed that BlackRock’s IBIT had the biggest inflow, which was worth $49.28.
According to SoSoValue data, on March 20, the total net outflow of Bitcoin spot ETFs was $261 million, marking three consecutive days of net outflows. The ETF GBTC had a single-day net outflow of $386 million, with GBTC's total historical net outflow reaching $13.27 billion.… pic.twitter.com/8yAN4N917x— Wu Blockchain (@WuBlockchain) March 21, 2024
Since the U.S. SEC approved the ETFs in January, the high inflows have been a catalyst for driving the value of BTC up. However, this recent update confirmed the speculation that the same institutional impact was one of the reasons the price of Bitcoin has decreased by 8.66% in the last seven days.
However, BTC changed hands at $67,018, indicating the return of buying pressure to the fold. But if the outflows continue to outpace inflows as it has done in the first few days of this week, then BTC might drop below $60,000.
Bulls Are Trying to Neutralize Bears
From a technical perspective, Coin Edition noticed the glaring bearish bias around the cryptocurrency. According to the 4-hour BTC/USD chart, there has been a death cross with the Exponential Moving Average (EMA).
At press time, the 20 EMA (blue) had flipped below the 50 EMA (yellow). This is considered a signal that reinforces the downtrend. Also, Bitcoin’s price had dropped below the 50 EMA, indicating that the recent uptrend might be halted.
BTC/USD 4-Hour Chart (Source: TradingView)
As it stands, BTC could decrease. If bulls are unable to keep up the pressure, the next target for the coin could be around $58,463. However, a surge in buying pressure could drive the coin to $70,202.
Furthermore, Coin Edition evaluated what was happening in the derivatives market. According to Coinglass, Bitcoin’s recovery caused massive liquidation in the market. As of this writing, over $317.55 million worth of BTC contracts had been wiped out.
This could either be because of high leverage or inadequate funding fees to keep the positions open. Out of liquidated positions, shorts accounted for more than half of the value. But that is not to say longs were left out, as volatility also caused some liquidation at their end.
Bitcoin Contracts Liquidation (Source: Coinglass)
From a trading perspective, the cascade of liquidation could end up nuking Bitcoin’s price. In addition, shorts might get aggressive, and if BTC drops below $60,000, they might get rewarded for their positions.
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