Bitcoin Bulls Charge Ahead Amidst Cash Inflow Surge
Bitcoin (BTC) has witnessed bullish momentum over the past few weeks, sparking optimism for a potential super cycle in the future. Despite the high volatility that has characterized the crypto market since the beginning of the year, cash inflow into Bitcoin investment products has remained strong. Data analysis from CoinShares reveals that Bitcoin attracted $1.72 billion in cash inflow last week, accounting for 94% of all cash inflows into crypto investment products during that period.
The Impact of Heavy Liquidation on Short-Term Market Outlook
Recent market data from Coinglass indicates that over $675 million was liquidated from the crypto derivatives market in the last 24 hours leading up to Tuesday’s early New York trading session. This heavy wave of liquidation follows a surge in Bitcoin’s price towards its all-time high, a move that occurred just before the halving event.
- This surge in liquidations can be attributed to the emergence of meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), FLOKI, and dogwifhat (WIF) which have gained popularity in recent times.
- As a result of this trend, the short-term bullish outlook for Bitcoin may be coming to an end, potentially leading to a correction in the altcoin market in the near future.
Technical Analysis Points Towards Bearish Pressure for Bitcoin
Technical analysis indicators suggest that Bitcoin may face bearish pressure in the coming days. The TD Sequential indicator recently flashed a sell signal on Bitcoin’s daily chart, indicating a potential reversal in the price trend. Additionally, the 1-hour Relative Strength Index (RSI) shows bearish divergence, further supporting the possibility of a choppy market ahead for Bitcoin.
Hot Take: What Lies Ahead for Bitcoin?
As Bitcoin continues to attract significant cash inflows and navigate through a volatile market environment, the path forward remains uncertain. With technical indicators pointing towards potential bearish pressure, traders and investors may need to exercise caution and closely monitor market developments in order to make informed decisions.
By
By
By