Bitcoin’s (BTC) Over the past 3 days, the daily chart has shown a bearish pattern of three blind mice. BTC is now outside the range established over a long period between $110,000-$90,000.
Bitcoin chart for the day. Source: Cointelegraph/TradingView
Bitcoin’s fair value gap has been tested over the last 24 hours. However, BTC is still struggling to build a bullish trend from its $82,000 low.
Spot Bitcoin exchange-traded funds lose $3.4 billion during February
Data from SoSoValue shows that between Feb. 24 to Feb. 27 Bitcoin experienced a drawdown of 12.48%. This was also accompanied by a period of significant spot BTC ETF withdrawals. SoSoValue data pointed The collective ETF spot market has seen an outflow this week of $2.4 billion, and the largest ETF ETF outflow since its inception was $1.13 billion on February 25.
Spot Bitcoin ETFs flows in February Source: SoSoValue
The spot BTC ETF Market witnessed an outflow of $3.4 billion in February.
The demand for spot BTC ETFs declined this week during the correction. Crypto analyst Adam said that historical data shows price reversals when large ETF outflows and inflows occur.
Bitcoin ETF spot inflows/outflows with inverse correlation to price. Source: X.com
Adam pointed out In 14 occasions of large inflows and outflows the Bitcoin price aligned only one time with those flows. It was an extremely rare occasion that occurred Nov. 7 after Trump won the election, where a substantial increase in price and significant flows were seen.
Adam said
“Generally, people see a big red number and start panic selling, or vice versa, which ends up sending the market in the opposite direction.”
Similarly, the trader thought that it was also dependent upon confluent variables. “some relief rally” The end is near. Zaheer (an anonymous analyst) said the recent drop in ETF net flows and spot price could be due the CME Futures Basis falling below the 5% level.
BTC CME on an annualized basis less than 5%. Source: X.com
The Analyst explained Most market participants will unwind their positions when the range of risk-free rates is breached. CME’s gradual decline in futures open interests highlighted a lack of investor confidence. This was also reflected by the low premiums on futures.
Related: Key metric shows Bitcoin hasn’t peaked, has bullish year ahead: Analyst
Bitcoin Fear & Greed Index conveys investor
Cointelegraph reported that the Crypto Fear & Greed Index had reached its lowest level since 2022, projecting a score of 10 into “extreme fear.” Ben Simpson, founder of Collective Shift says that the current market conditions may present an opportunity to buy, since the strategy of selling on greed and buying in fear has proven profitable.
Bitcoin Fear & Greed Index by Axel Adler Jr. Source: X.com
However, Axel Adler Jr, an onchain market researcher, pointed out that the Bitcoin Fear & Greed Index’s 30-day moving average is yet to drop below the 50th percentile.
Adler explained It is known that historically, the 30DMA dropping under the 50th centile signaled Bitcoin prices reversals or upward trends. But the current index still remains above this threshold. Adler stated that the best way to proceed is to “wait” Watch the markets to see what they do in the next few days.
Related: BlackRock Bitcoin fund sheds $420M as ETF losing streak hits day 7
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Source: cointelegraph.com
