Along with the drop in Bitcoin price, the Bitcoin ETF spot market has appeared rather gloomy in recent days. According to data from analytics company BitMEX ResearchThese BTC ETFs have seen negative net flow over the past four trading sessions.
This was marked by significant levels of outflows GBTC from Grayscale and record inflows to other ETFs, primarily market leaders IBIT from BlackRock and FBTC from Fidelity. However, amid these persistently declining net flows, Ki Young Ju, prominent analyst and CEO of Cryptoquant, predicted a possible resurgence in the Bitcoin ETF spot market.
Analyst Identifies $56,000 Level as Critical for Bitcoin ETF Recovery
In a job on March 22 on Using data from historical net flow trends, the analyst noted that demand for Bitcoin ETFs typically triggers when the cryptocurrency hits certain support levels.
Young Ju said that, in particular, new BTC whales, especially ETF buyers, showed a base cost of $56,000 on-chain. This suggests that large new Bitcoin holders, especially those invested in ETFs, were generally purchasing Bitcoin at an average price of $56,000. Following this trend, the crypto head believes that the Bitcoin ETF spot market could see massive inflows if BTC reaches the specified price level.
#Bitcoin net flows from spot ETFs are slowing.
Demand could rebound if $BTC the price is approaching critical support levels.
New whales, primarily ETF buyers, have an on-chain cost of $56,000. Corrections typically result in a maximum drawdown of around 30% in bull markets, with a maximum pain of $51,000. pic.twitter.com/vZCG4F0Gh5
– Ki Young Ju (@ki_young_ju) March 22, 2024
For now, the price of Bitcoin is hovering between $62,000 and $68,000, as seen last week. However, Young Ju believes that such a drop is very feasible, as price corrections usually result in a maximum drop of 30%. Using BTC's most recent high of $73,750, the analyst predicts that the asset's price could still trade as high as $51,000.
BTC Price Overview
At press time, Bitcoin keep on going is trading at $64,065.74, representing a decline of 3.73% and 7.17% over the past one and seven days. At the same time, the daily trading volume of the asset is down 3.53% and is valued at $39.62 billion.
Following historical bull cycle trends, it is possible that BTC reached its price peak before the April halving. If this is the case, Bitcoin is unlikely to return to previous high price levels soon and could see further price declines in the coming weeks.
BTC trading at $64,315.00 on the hourly chart | Source: BTCUSDT chart on Tradingview
Featured image from Euronews, chart from Tradingview
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