Bitcoin (BTC/USD) daily chart
The dip yesterday was bought back up late in the day, as price barely hangs on at the 100-day moving average (red line). That is the key technical level in play for Bitcoin now as price threatens a steeper drop under the $40,000 mark. The post-ETF fallout continues for the cryptocurrency and the downside pressure is mounting as traders are running out of reasons to stay bullish.
As much as there is an argument for the correction to run deeper, we have to respect the technicals too. And for now, that is dictating that buyers are still staying in the game. A firm rebound back above $40,000 will give them more confidence but it doesn’t take away from the continued negativity on the outlook following the ETF launch.
There is also the story regarding the outflows in Grayscale’s Bitcoin Trust (GBTC), which looks to be continuing. And that remains a drag on sentiment for the cryptocurrency at the moment.
That covers the fundamental side of things but whatever the conviction may be now, it points to a battle of the key technical level above. And that will determine what comes next for Bitcoin.