Bitcoin (BTC) has maintained stability above $60,550 for the past four months, despite concerns of potential crypto capitulation. The leading cryptocurrency was trading around $61,377 on Wednesday, down from its recent high of around $70,000.
Positive cash inflows were recorded in the United States’ spot Bitcoin exchange-traded funds (ETFs) after a period of outflows. Fidelity’s FBTC and Bitwise-backed BITB saw inflows of $49 million and $15 million respectively, while Grayscale’s GBTC experienced an outflow of $30 million. BlackRock’s IBIT did not record any cash flow.
There are indications of a possible local bottom in the Bitcoin market, according to CryptoQuant’s Gustavo Faria. Short-term Bitcoin holders are facing negative average profitability, a common sign of a potential bottom. The Bitcoin Futures open interest market has also decreased by $3 billion in the past three weeks, with near-zero funding rates.
Investors are closely watching U.S. economic data, with upcoming reports on GDP, initial jobless claims, and inflation. The uncertainty surrounding American monetary policy has been a key factor influencing market sentiment in recent months.
In terms of price targets, Bitcoin could end the month trading around $61,000. A sustained drop below $60,000 could push the cryptocurrency towards $50,000, although the weekly Relative Strength Index (RSI) approaching the 50 percent level suggests a potential market rebound.
Overall, the cryptocurrency market continues to navigate through various challenges and uncertainties, with investors closely monitoring key economic indicators and market trends.
