After closing the last four days in a bearish outlook, Bitcoin (BTC) price has significantly slowed down in the initial bullish momentum towards the much-hyped target of $100k. Moreover, the flagship coin has consistently closed below the previously established support level of $95k.
With the altcoin industry gradually gaining bullish momentum, Bitcoin dominance is signaled further weakness in the short term. In the daily time frame, the Bitcoin dominance has been forming higher highs but the Relative Strength Index (RSI) has been forming a bearish divergence.
Consequently, it is safe to assume that more investors are turning focus to the altcoin industry, thus escalating the ongoing crypto cash rotation.
Spot Bitcoin ETFs Further Bleeds
Since Bitcoin price reached $99.5k last week, the extreme greed from investors has dropped from 93 percent to about 75 percent, suggesting just greed, at the time of this writing. In the past two days, the US spot BTC ETFs have registered a net cash outflow of more than $550 million.
On Tuesday, the US spot BTC ETF issuers registered a net cash outflow of about $122 million.
BlackRock’s IBIT registered a zero net cash flow on Tuesday, while Fidelity’s FBTC and Grayscale’s GBTC registered the highest cash outflow of $95 million and $36 million respectively.
Meanwhile, Bitwise BITB and Grayscale’s BTC were the only issuers with positive cash inflow of about $6.47 million and $4.84 million respectively.
What Next?
Bitcoin price is on a macro bull rally that was confirmed after the U.S. 2024 elections. However, the bullish tide is gradually shifting to the altcoin industry led by Ethereum (ETH).
From a technical analysis standpoint, the BTC price could retest the support level of about $85k if the current range above $91k fails to hold.
According to veteran trader Peter Brandt, Bitcoin price could rally towards $130k before experiencing a major correction akin to the previous bull cycles.
