The beginning of the new week in global markets brings a continuation of the downward momentum in the cryptocurrency market. Bitcoin is currently losing close to 3% in intraday trading and is approaching the key medium-term barrier of 40,000 USD. Significant downward dynamics are also observed in Altcoins. Ethereum is currently down 4.6% and is trading in the 2355 USD zone.
The declines are supported by further information about Bitcoin transfers from Grayscale to Coinbase Prime, a platform aimed at institutions. In today's transfer at the start of the session, Grayscale sent another 19,260 Bitcoins.
The above chart shows the accumulated capital flows for spot ETFs on Bitcoin. Over 6 days since the start of trading on exchanges, the total outflows of capital from Grayscale amounted to 2.8 billion dollars, exerting supply pressure on the market. Investors fear that the selling pressure may continue for many weeks. However, considering the capital flow from all ETFs, we still record a positive flow of +1.188 billion dollars.
Bitcoin is currently losing close to 3% and is approaching the key support level of 40,000 USD. A potential breach of this zone could bring the quotations of the most popular cryptocurrency to the lowest levels observed since the first half of December 2023. In the case of demand reactions, the key resistance area could be the 42,000 USD zone, where currently the 50-day exponential EMA (blue curve) and the 50% retracement of the downward wave that began in November 2021 are located.
Source: xStation
Daily Summary: Technology Drives Wall Street to Record Highs Despite Tensions in the Persian Gulf
Morning Wrap: USโIran Peace Talks in the Shadow of Trumpโs Ultimatum
Technical analysis: Bitcoin gains and approaches important resistance zone
Crypto news ๐ Bitcoin rebounds approaching $80k level
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
