- Bitcoin’s price dropped below $60,000 as inflows into spot Bitcoin ETFs stagnated
- The strengthening U.S. Dollar Index (DXY) and a weakening technical setup contributed to Bitcoin’s price correction
- Bitcoin’s crucial support level of $62,000 has flipped into resistance, suggesting a potential further downside
Bitcoin’s price has fallen below the key $60K support level as inflows into spot Bitcoin ETFs have stalled in recent days. This breakdown comes amid a strengthening US dollar and weakening technical setup for BTC.
Slowing Flows Into Spot Bitcoin ETFs
Bitcoin spot ETFs like Grayscale’s GBTC and 21Shares’ ARKB have seen net outflows and several days of zero flows. Most ETFs typically have zero daily flows as shares are created/redeemed only when large supply/demand mismatches occur. Minor mismatches are handled by market makers trading shares.
US Dollar Index Sees Best 5-Day Run Since February 2022
The US dollar index (DXY) has rallied strongly to a 6-month high, logging its best 5-day performance in 14 months. Expectations for sustained higher interest rates have increased demand for the dollar. Technically, the DXY looks poised to continue rising towards the November 2022 high.
BTC’s Crucial $62K Support Flipped Into Resistance
According to on-chain data, $62K was a key support level for Bitcoin based on UTXO realized price distribution. This support has now turned into resistance as BTC has fallen below this level. The path of least resistance appears to be downward based on IOMAP data.
Conclusion
Bitcoin’s breakdown below $60K and stagnating spot ETF flows are adding fuel to the ongoing price correction. Meanwhile, the strengthening dollar is creating significant headwinds. Unless BTC can reclaim key support levels, further downside appears likely in the short-term.
