Bitcoin (BTC) price is recovering its losses incurred at the beginning of the week, trading at $57,466, up 4.6% over the last 24 hours. BTC is trading 13% lower than its value last week, with only a 3% uptick over the last 30 days.
Despite BTC’s recovery over the last two days, US-based spot Bitcoin ETFs continued negative flows on Tuesday, recording $148.6 million in net outflows, according to data from Farside Investors.
Fidelity’s FBTC led outflows among 12 Bitcoin funds yesterday with $64.48 million. Grayscale’s converted GBTC fund reported $32.18 million in outflows, and ARK Invest and 21Shares’ ARKB logged $28.88 million in net outflows. Franklin Templeton’s Bitcoin fund also lost $23 million on Tuesday.
BlackRock’s IBIT, the largest spot Bitcoin ETF in terms of net asset value, reported zero flows yesterday, along with seven others.
On Aug. 6, $2.2 billion worth of funds were traded in spot Bitcoin ETFs. Since launching in January, the 12 funds have accumulated a total net inflow of $17.19 billion.
Bitcoin price broke below the $60,000 psychological level on Aug. 4, leading to a 17% decline over the following three days to reach a seven-month low of $49,577. However, it established support at $54,000, bouncing back with a 7% uptick to the current levels above $56,000.
In this scenario, BTC might bounce into a bull trap, potentially encountering resistance at the $62,000 psychological level. This level aligns with the broken trendline and the 100-day exponential moving average (EMA) at around $63,031, marking it a critical reversal zone.
Failure to break above $62,066 might trigger a 19% crash, back to retest the $49,917 daily support level.
The daily relative strength index (RSI) indicator is around 38, just above the oversold threshold. This indicates the possibility of a temporary relief rally before the downward trend resumes.
On the downside, a close above the Aug. 2 high of $65,550 would change the market structure by forming a higher high on the daily timeframe. Such a scenario might drive a 6% rise in Bitcoin’s price to retest its 2021 all-time high of around $69,000.