Bitcoin Prices Decline for Fourth Consecutive Week
Bitcoin is experiencing a tough time, having dropped for four weeks running. As of Wednesday, it traded at $68,245—significantly lower than its peak of $126,300. This decline reflects a decrease in demand, but there’s a hint of optimism as larger investors, often referred to as whales, seem to be re-entering the market.
It looks like these Bitcoin whales have started to accumulate again. Over the last week, they scooped up 53,000 coins, valued at over $3.65 billion. This marks the biggest whale activity since November of last year, during which wallets containing more than 1,000 coins accumulated around $4 billion worth of BTC.
Yet, caution is still advised. Analysts note that these same whales have sold off more than 170,000 coins since December. Furthermore, the market is facing other risks: futures open interest has plummeted recently, particularly since October 10, when a staggering $4.65 billion of positions were liquidated in a single day.
The total futures open interest has dwindled from over $95 billion in October to just $44 billion now, indicating that many investors appear hesitant to jump into the market.
On a brighter note, the Spot Bitcoin ETF has seen recent asset inflow, adding more than $145 million on Monday, following a previous addition of $371 million on Friday. This has somewhat mitigated overall outflows, which now sit at $173 million for the month.
In November, the Spot Bitcoin ETF faced a decline of $3.4 billion, followed by $1.09 billion in December, and over $1.6 billion in January due to ongoing market challenges.
Interestingly, the gap between iShares Bitcoin ETF (IBIT) and SPDR Gold ETF (GLD) has tightened in the past months, with IBIT holdings exceeding $54 billion and GLD’s surpassing $174 billion as gold prices rise.
Meanwhile, digital asset treasury firms have mostly held back in recent months, with only a few making purchases. Over the past month, one strategy acquired 27,234 coins, bringing its total to 714,644 coins valued at over $48 billion. Some companies, like DDC Enterprises and Kanan, bought 705 and 48 coins, respectively, while others, including Empery Digital and Cango, sold off 357 and 4,504 coins during the same timeframe.
Bitcoin Price Outlook: Technical Analysis
Looking at the daily price chart, Bitcoin has been under consistent pressure. It’s trading below several key indicators. Right now, it’s beneath the 50-day and 200-day exponential moving averages, forming what’s known as a death-cross pattern.
The relative strength index (RSI) is near oversold territory, and the MACD indicator has been on a downward trend for a while.
The prevailing scenario suggests that Bitcoin could continue to slide and may soon test the crucial support level at $60,000. If it breaks below that, further declines could follow. Still, the uptick in whale activity could be an indication that a bottom is approaching.
