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Bitcoin price is trading at $62,970, slightly down on the day at 0.65%. BTC’s price action mirrors the sentiment in the wider crypto, which has also dropped by 0.45% over the last 24 hours to rest at $2.32 trillion.
The lackluster performance by BTC follows a report that outflows from digital investment products continued last week, stretching their three-week run to a cumulative $1.23 billion outflows, according to data from CoinShares.
Last week’s $30 million outflows show traditional investors are reducing their exposure to crypto assets.
CoinShares’s head of research James Butterfill, wrote,
“Digital asset investment products saw a third consecutive week of outflows totaling US$30m, with last week indicating a significant stemming of the outflows.”
The report also revealed that the weekly trading volumes across these ETFs increased by 43% to $6.2 billion but remained below the year’s $14.2 billion weekly average.
The reducing volumes point to decreased investor appetite for risk-on assets, attesting to BTC’s sluggish price action.
On the positive side, inflows into U.S. spot Bitcoin ETFs continued on July 1, with investors pouring approximately $130 million into these investment products, according to data from SoSo Value.
Increasing inflows into Bitcoin investment products means that the price is likely to increase due to demand-side pressure.
Bitcoin price analysis
A closer look at the Bitcoin daily chart reveals that the price is reading above a key support area stretching from $60,000 to $62,000.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals that 1.6 million addresses in this zone previously bought about 696,810 BTC.
Increasing demand from this cohort of investors could cause the price to rise from the current level.
A key level to watch on the upside is the $66,000 supplier congestion zone, where the 50-day simple moving average (EMA) and the 100-day EMA appear to converge. Breaching this level would suggest the ability of the buyers to sustain the higher levels, with the next levels to watch being the $70,000 and $72,000 psychological levels.
This positive outlook was supported by the upward trajectory of the relative strength index (RSI). The increase in price strength from oversold conditions at 25 on June 24 to the current value of 44 indicates that the bulls are returning to the market.
On the downside, a daily candlestick close below the key support area at $60,000 would see BTC record lower lows. The first line of defense is the 200-day SMA at $58,315. Lower than that, the range low of $56,500 would be the next logical move.
