BTC Lower On Record ETF Outflows
BTC Heavily Sold
Bitcoin prices remain pressured at the start of the new week with the futures market remaining in the red, now on course for a sixth consecutive losing day. Uncertainty over the Iran war has seen BTC correcting heavily lower in recent weeks with the market shedding almost 13% from the May highs. Price had been rallying across April and early May fuelled by rising optimism that a deal between the US and Iran would materialise. With risk markets projected to capitalise on such an announcement, institutional investors flooded back into BTC via ETF which recorded record inflows of around $1 billion, reversing the outflows seen across Q4. However, as negotiations stalled and ceasefire extensions lost their impact, ETF flows have recently turned negative once again with Friday marking a 10 day streak of just under $3 billion in outflows.
Ceasefire Fears
News of recent tit-for-tat military exchanges between the US and Iran is fuelling fears that the ceasefire might still collapse, given the lack of progress in negotiations. With that in mind, BTC has fallen from favour with traders preferring safe-haven positioning in the US Dollar, or the more straightforward gains we’re seeing in US stocks currently. Looking ahead, BTC is vulnerable to further weakness unless we hear some positive headlines on the US/Iran front with news of any further attacks will weigh heavily on BTC sentiment
Technical Views
BTC
The sell off in BTC has seen price breaking below the $74,270 level, now testing the bull channel lows. If we break below this structure, $69,605 is the next support to watch ahead of the deeper $65,380 level below.
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