Bitcoin’s $326M ETF Outflow Signals Market Shift as BTC Holds $111K
Bitcoin put in a brief appearance near $111,994, showing a bit of a bounce back from its top at $126,230, although that recovery...
Quick overview
- Bitcoin briefly bounced back to $111,994 after a peak of $126,230, despite $326 million being withdrawn from US spot Bitcoin ETFs on October 13.
- BlackRock's IBIT was an exception among ETF issuers, attracting 522 BTC ($60.3 million) while experiencing significant trading volume of $4.7 billion on the same day.
- Bitcoin's price is currently supported by a rising trendline and is forming a symmetrical triangle, indicating a potential tug of war between buyers and sellers.
- Traders are advised to consider a long entry at $110,000 with a tight stop loss, while aggressive traders may wait for a break above $113,600 for a more solid entry point.
Bitcoin put in a brief appearance near $111,994, showing a bit of a bounce back from its top at $126,230, although that recovery is being somewhat offset by institutional investors pulling $326 million out of US spot Bitcoin ETFs on October 13.
All of the major ETF issuers are seeing redemptions – with one notable exception being BlackRock’s IBIT which actually took in 522 BTC ($60.3 million) on that day and continued to see massive daily trading volume of $4.7 billion with that all happening on October 13.
Trading had kicked off the month of October with a bang, with $5billion+ in inflows during the first week – but then macro risk – particularly trade tensions – came back into play and has flipped all that on its head.
Bitcoin Technical Setup: Support Held Up Okay and a Pattern In The Making
Bitcoin’s price movement is still playing nice with the rising trendline support that has been holding things together since early September, which is suggesting that the overall uptrend is still intact. Right now, the market is pretty tightly pinned in a symmetrical triangle which is kind of a tug of war between buyers and sellers.
The 50 day EMA ($116,614) and the 200 day EMA ($116,252) are getting ready to cross over each other – when (or if) that happens, it could get pretty interesting in terms of momentum. Resistance in the $113,600-$115,900 zone is looking a little bit of a challenge for the bulls, meanwhile support down at $109,600-$110,500 is looking pretty firm. And then you have the RSI reading 37 which is saying the market is a bit oversold right now but not at all overcooked so there’s a good chance of a rebound if buyers can start making some gains again
Candlestick wise we’re seeing some warning signs that selling is starting to get a bit tired – a hammer candle in that support zone might be a sign that a reversal is just around the corner. If the price can get a decisive close above $113,600 that really would give some credibility to a shift in momentum and be looking to head for $117,900-$122,600. If on the other hand the price does break below $109,600, then it’s likely to be a slide for $107,300.
Bitcoin Trade Idea: A Long Entry With Some Controls
For the patient traders out there who are prepared to wait, a long entry at $110,000 would be a reasonable idea with the stop loss set just below $108,900 – this would keep your risk pretty tight, target is $117,900-$120,000.
For those traders who are more aggressive they could be waiting for a clear break above $113,600 on some decent volume and RSI momentum and it would give them a more solid entry point – and one that is aligned with the bulls having the upper hand.
There’s a delicate balance between institutional flows, chart structure and technical confluence at the moment so keeping your risk tight and waiting for some kind of pattern confirmation will be pretty key as we navigate this pretty compressed space and see which way the market is going to go next.
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