Bitcoin’s (BTC), price fell to $78,800 after it was rejected by a dynamic level of resistance. Although the Bitcoin spot ETF weekly inflows surpassed $1 billion on Thursday for the first since January, this pullback was still observed. Technical data however suggests that it may not last long.
BTC may be headed lower if there are bearish divergences.
Bitcoin’s drop below $80,000 was accompanied by a divergence between the relative strength indicator (RSI), on both the four-hour chart and the hourly chart. BTC forming higher highs is a bearish divergence. The RSI in lower time frames weakens.
BTC/USDT, four-hour chart. Source: Cointelegraph/TradingView
Price action could be stabilized if the price is held above the $78,500 weekly open. Technically, the key support area remains in between $76,000-$78,000. This is where Bitcoin’s 200 day exponential moving average (EMA) and daily fair value gaps (FVGs) are aligned. BTC may retest this zone if the correction persists before trying to rebound over its recent high of $82,800.
The fair value gap is an area in which a large price change occurred previously with little trading activity. This imbalance often turns into a liquidation zone when retracements occur.
Jelle, Cryptotrader said You can also find out more about the following: “200-day MA/EMA cluster” It was also identified as $78,000 being the first important support zone. Jelle said that the retesting of a 200 day moving average could lead to Bitcoin retesting higher targets.
Meanwhile, crypto trader Killa XBT identified The $76,300 – $74,700 area is a more solid support range if the selling pressure continues. Bulls have been trying to hold the $78,500 weekly opening level in the short term, according to this trader.
BTC One-Day Chart Analysis by Killa Source:
Related: Bitcoin analysts say this level must break for BTC price to confirm bottom
Spot ETF inflows are expected to offset any price drop.
Spot Bitcoin ETF demand strengthened This week, the market has risen sharply. Net inflows totaled $1.05 Billion, the largest weekly intake since January’s third week. Positive closing Friday will confirm largest ETF return for the week in over four months.
Spot BTC ETF net inflows. Source: SoSoValue
Swissblock data Shows that the Bitcoin Risk Index reset at near zero while ETF Net flows have turned positive again around 3,000 BTC. Historically, increased risk readings have been correlated to ETF outflows as well as a greater selling pressure on the whole market.
BTC ETF flows and risk index. Source: Swissblock/X
The resets to the zone of low risk often coincided in the re-accumulation near the main support clusters. This analysis also revealed that
“That synchronization is still in place. Even when the Risk Index ticked slightly higher last week, ETF selling appeared briefly, but accumulation quickly resumed. That tells us ETF demand is absorbing selling pressure. This remains a flow-driven breakout.”
Related: Bitcoin market dominance moves above 61%: Will altcoins follow?
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Source: cointelegraph.com
