The drop in Bitcoin from $38,500 to $36,700 has triggered a significant increase in sell-offs. According to Coinglass data, the decline in the price of the leading cryptocurrency has resulted in a total of approximately $22 million being sold, with roughly $15.6 million of that coming from long positions. This has dashed hopes of further purchases, as the price has lost momentum towards the $38,000 level.
However, the cumulative volume delta (CVD) tells a different story: it suggests that buyers are still actively participating. Despite Bitcoin's price fluctuating below $37,000, trading volume is undergoing substantial shifts. The difference in CVD indicates the presence of buying activity, signaling a potential correction despite the price decline.
Bitcoin Order Book
Another sign to note is the increase in buyers' limits, reaching approximately $37,000. Limit orders are placed for buying or selling securities at a specified price. The concentration of limit buy orders around this level indicates that traders anticipate it to be a favorable entry point and expect the price to rise again.
What's interesting is that further declines could trigger aggressive intervention from spot bulls in the range of $37,000 to $36,500. This action could help alleviate the ongoing selling pressure.
BTC Price Outlook
The recent uptrend in Bitcoin faced resistance around $38,000, but the bulls aren't rushing to exit their positions, indicating an expectation of a continued upward trend. As of the time of writing, the BTC price is trading at $36,790, which is 1.4% lower than the previous day.
Currently, Bitcoin finds support at the 100-day exponential moving average (EMA) on the 4-hour price chart. A rebound from this level would suggest that traders are ready to buy at every minor dip. However, the price is currently moving within a specific range, and a breakout could create increased pressure.
If Bitcoin surpasses its trend line, it may approach $40,000. On the flip side, a drop below the support level may indicate profit-taking by traders, potentially leading to consolidation between $34,000 and $35,500.
Bulls are exerting effort to keep the price above the moving averages, but breaking through the $38,000 barrier remains a challenge. The relative strength index (RSI) dropping below the 39 level implies a bullish dominance.
Dominates Inflows and Gains Investor Trust
A notable event for investment products in the digital asset space last week was a significant influx of funds totaling $346 million US dollars.
This surge marked the highest weekly capital inflow registered for nine consecutive weeks, indicating sustained investor interest and confidence in this sector. The primary driver of this substantial capital inflow was Bitcoin, which attracted the lion's share of funds, with an inflow of $312 million US dollars.
The leading cryptocurrency remains at the forefront of investors' attention, as they seek access to the digital asset market. The significant influx of funds into Bitcoin underscores its resilience and attractiveness as a store of value.
In turn, Ethereum experienced a noticeable uptick in investor sentiment. During the same week, there was an influx of $34 million US dollars. This positive shift implies a growing recognition of the utility of Ethereum, especially considering the ongoing development of decentralized finance (DeFi) ecosystems and non-fungible tokens (NFTs).
The successive nine weeks of increased inflows reflect a stable bullish trend in the digital asset investment space. Investors seem undeterred by market volatility, signaling the maturation of the sector and increased confidence in the long-term potential of digital assets.
Industry experts attribute this positive trend to a combination of factors, including growing institutional interest, greater regulatory clarity, and ongoing blockchain technology development. As the digital asset market continues to evolve, these factors are likely to play a key role in shaping its trajectory.
