Bitcoin ETF Inflows Halt as Traders Adopt Defensive Stance
The recent halt in Bitcoin ETF inflows after a 15-day streak signals a cautious shift among traders. Over $342.2 million flowed out on July 1, with key funds like Fidelity Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust ETF (GBTC) leading the withdrawals. Analysts now watch the $106,500 support level closely, as breaking below could signal deeper corrections.
Market Sentiment Turns Cautious
Data from SoSoValue shows a stark reversal from the previous $4.7 billion inflows. Traders are avoiding risk, with futures premiums at 21-month lows. This reflects a broader trend of reduced leverage and yield-seeking in the market.
Key Levels to Watch
- $106,500: Crucial support level for Bitcoin’s price stability.
- $109,000: Significant resistance that could trigger price discovery if breached.
- Below $104,000: Potential for deeper corrections, according to analysts.
Expert Insights on Bitcoin’s Next Move
“The current consolidation is typical for this phase,” notes Daan Crypto Trades. AlphaBTC adds, “A break above $109K could push Bitcoin into new highs.” Both emphasize patience as the market seeks direction.
What This Means for Bitcoin Traders
With muted activity and defensive positioning, the market awaits fresh demand. The coming days will be critical in determining whether Bitcoin breaks out or faces further consolidation.
