- Bitcoin rebounded back above $70,000 after slumping last week due to outflows from US ETFs totalling $900 million.
- Despite the outflows, Bitcoin traders appear unfazed, with the price briefly rising back above $70,000 on Monday. Other major cryptocurrencies also traded higher.
- Analysts say traders are taking advantage of lower prices before Bitcoin resumes its upward trajectory. They remain optimistic about the outlook as long as Bitcoin holds support above $50,000.
Bitcoin has rebounded back above $70,000 after a slump last week caused by outflows from US exchange-traded funds (ETFs).
Bitcoin Enthusiasts Shrug Off ETF Outflows
Despite significant outflows totaling almost $900 million from US spot ETFs last week, Bitcoin traders appear unfazed. The largest cryptocurrency briefly rose back above the $70,000 level on Monday.
Most other major digital assets also traded higher, with Ethereum up around 5% and Solana and Dogecoin both climbing more than 4%.
Investors Eager to Buy the Dip
According to INDIGO’s chief market analyst Edward Cohen, people are eager to buy the dip after last week’s ETF outflows caused a slump.
“We’re seeing traders take advantage of the lower prices before Bitcoin resumes its upward trajectory,” Cohen said. “This is a textbook technical rebound illustrating the strong underlying bullish sentiment.”
Bitcoin Price Levels
At the time of writing, Bitcoin had gained as much as 5.8% to $70,014. That was the first time it closed above $70,000 in over a week.
Bitcoin remains on track for one of its worst weeks in 2023. However, analysts say the broader uptrend is still intact.
“The path of least resistance is still to the upside despite the recent volatility,” explained Bloomberg Intelligence senior commodity strategist Mike McGlone. “We see $100,000 as the next threshold.”
Outlook Going Forward
Most experts remain optimistic about Bitcoin’s price outlook. They view the latest dip as a healthy correction rather than the start of a bear market.
As long as Bitcoin holds support above $50,000, they expect the bull run to continue. However, breaking below that level could signal a trend change.
