Bitcoin (BTC) has seen significant market fluctuations as it retests a crucial support level near $103,000, driven by escalating geopolitical tensions and the upcoming Federal Open Market Committee (FOMC) announcement. Recent data shows that U.S. spot Bitcoin Exchange Traded Funds (ETFs) have been actively accumulating BTC, highlighting a bullish sentiment that has emerged following previous FOMC meetings.
The price of Bitcoin dipped about 5% recently, hitting a low of $103,396, which also caused a downturn in the wider altcoin market. Over $513 million in leveraged positions were liquidated during this time, primarily affecting long traders. Despite the bearish pressure, investors seem optimistic, as suggested by the Bitcoin Fear and Greed Index, which remains at 68%.
The demand for Bitcoin from institutional players continues to rise, with assets on centralized exchanges dropping to approximately 2.08 million BTC from 2.26 million in late April. This decline is partly attributed to significant net inflows into U.S. spot Bitcoin ETFs, totaling around $1.46 billion in the last five days, with significant contributions from firms like BlackRock.
On a technical front, BTC has exhibited a bullish continuation pattern, recovering slightly to about $105,000 after testing support. Analyzing the two-hour chart reveals a potential breakout from a falling trendline, with while relative strength indicators are hinting at oversold conditions that could lead to a recovery. A sustained close below the support range of $103,000 to $101,000 could signal further bearish activity in the coming weeks, possibly affecting sentiment in the crypto markets.
The price of Bitcoin dipped about 5% recently, hitting a low of $103,396, which also caused a downturn in the wider altcoin market. Over $513 million in leveraged positions were liquidated during this time, primarily affecting long traders. Despite the bearish pressure, investors seem optimistic, as suggested by the Bitcoin Fear and Greed Index, which remains at 68%.
The demand for Bitcoin from institutional players continues to rise, with assets on centralized exchanges dropping to approximately 2.08 million BTC from 2.26 million in late April. This decline is partly attributed to significant net inflows into U.S. spot Bitcoin ETFs, totaling around $1.46 billion in the last five days, with significant contributions from firms like BlackRock.
On a technical front, BTC has exhibited a bullish continuation pattern, recovering slightly to about $105,000 after testing support. Analyzing the two-hour chart reveals a potential breakout from a falling trendline, with while relative strength indicators are hinting at oversold conditions that could lead to a recovery. A sustained close below the support range of $103,000 to $101,000 could signal further bearish activity in the coming weeks, possibly affecting sentiment in the crypto markets.
