Key takeaways
- BTC has dropped to the $114,500 region after breaking above $115k earlier.
- The coin could decline towards $113k if bullish momentum fades.
Bitcoin ETF inflow returns, but price remains stagnant
Bitcoin, the leading cryptocurrency by market cap, is up less than 1% in the last 24 hours despite positive macroeconomic factors. At press tim,e BTC is trading around $114,500 after failing to hold price above $115k.
The current price action comes after stabilization in institutional flows, with Bitwise reporting $18.74 million in net inflows, a potential reversal after one of the largest ETF outflow days on record last week.
If ETF inflows continue and implied volatility begins to compress, BTC could rally higher, allowing the cryptocurrency to reclaim its previous levels around $118.
BTC could retest $113k before rallying higher
The BTC/USD 4-hour chart is bearish and efficient as Bitcoin has been underperforming over the past few days. The technical indicators remain stagnant as the market continues to consolidate.
The Relative Strength Index of 49 shows that the bearish trend could be fading as it approaches the neutral zone. The MACD lines are also within the neutral zone, suggesting a consolidating market.
Bitcoin’s rally is sustainable once the RSI crosses and stays above 50. If the market conditions improve, BTC could rally towards the TLQ at $116k. Surpassing this resistance level would allow BTC to retest the major resistance zone at $120k over the coming hours or days.
However, the market conditions remain unclear, and Bitcoin could undergo a correction. If that happens, the bulls might be prompted to defend the major support level around $112k. Failure to hold this support level would see Bitcoin trade below $110k for the first time since July 9.
Currently, the market conditions are stable, with no clear bullish or bearish direction for traders.
