• Bitcoin experiences healthy inflows on 29 out of 33 days in ETFs, which demonstrates a consistent institutional interest.
• The volume of the trading increases by 6.53% to 75.88 billion, and open interest is slightly up.
• Bitcoin is currently trading above two major averages but a bearish crossover in MACD is an indication of a loss of strength.

Inflow of institutional funds in the form of exchange-traded funds (ETFs) remain potent to the stability of Bitcoin. The data of Santiment indicates the net inflows on 29 out of the 33 trading days. This contributes to sustained and increased interest on the crypto market on the behalf of institutional investors.

Such inflows amounting to billions of dollars are in a position to assist Bitcoin to stay exertionless. ETF demand is breathing life into it despite a larger withdrawal in the market. This has turned out to be one of the factors which have driven the aspect of Bitcoin retaining its position.

Source: X

Bitcoin Derivatives Heat Up as Longs Get Hit

New signs of activity in the Bitcoin market are present in Coinglass as interest is surging on significant crypto exchanges. The activity in the form of trading volume has also grown, by 6.53% to be precise, to a level of $75.88 billion within the past 24 hours, which is indicative of high participation. 

Open interest also increased by 0.63%, to the current point of $84.10 billion, which is indicative of the fact that although the traders are active, many of them are eyeing the market not with aggression but wariness.

Source: Coinglass

In the derivatives segment, total liquidations in the previous day amounted to $68.34 million. Long positions accounted for a huge percentage, $59.97 million, which was compared to short positions, which were $8.37 million. The disparity indicates too many long traders are forced into positions as the Bitcoin seems strong but has not broken out decisively, leaving short-term traders betting on further upside.

Also Read: Trump Imposes Tariff on India: Crypto Reacts with 4% Drop

Bitcoin Holds Key Levels but Momentum Fades

Technically, the price of Bitcoin is still holding above all the significant moving averages, such as the 50-day, 100-day, and 200-day lines. The 50-day moving average at $111,513 is serving as immediate support, and the 100-day and 200-day at $106,969 and $98,931 are good supporting areas. 

Source: TradingView

The Moving Average Convergence Divergence (MACD) has just given a bearish crossover. The MACD line has crossed the lower side of the signal line, and the histogram is also showing a negative value of -500. This transition indicates a decline in buying pressure and creates a chance of short-term correction in case buyers cannot regain control.

The range action on the daily chart shows that the ranges are becoming smaller and volatility is declining. Bitcoin has over and over again tried to test at the level of $118,000 but has continued to fail convincingly above it. 

In case the Bitcoin Invalidates the 50-day moving average, it might result in an opening to a decline to the low of $106,969. Nonetheless, a powerful impulse above the recent high of $118,775, may tap back the bullish drive and move the prices to the area of $120,000-$123,000.

Also Read: Bitcoin Shows Resilience After $9.6 Billion Sell-Off, Eyes $120K Resistance