Bitcoin price fell almost 10% this week, going from local high of $21,800 on June 26th to recently hitting a low of $19,856. The most popular cryptocurrency followed US indices, where sellers regained control and pushed Nasdaq nearly 3% lower on Tuesday following another disappointing macroeconomic readings. Also recent activity of institutional investors support a bearish outlook. According to CoinShares cryptocurrency investment funds recorded outflows totaling $423million, largest since records began and were mostly focused on Bitcoin. It must be noted that some of the outflows occurred on 17th June, but were reflected in the recent report due to the trade reporting lags. Meanwhile, short-Bitcoin funds recorded inflows of $15 million due to the launch of the first US-based short investment product last week. However, older short investment products recorded outflows.
Bitcoin erased almost all inflows year to date, as a results value of assets under management (AuM) fell to $24.5 bn the lowest level since first quarter of 2021. Source: CoinShares
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Bitcoin resumed downward movement this week, after buyers failed to break above 200 SMA (red line) which acts as the short-term resistance. If current sentiment prevails, downward move may accelerate towards local support around $17770 which is marked with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, the next target for sellers is located around $12700 and is marked with the lower limit of the 1:1 structure. Source: xStation5
