Key Insights
- Bitcoin price has pulled back in the past few days.
- Spot Bitcoin ETF inflows continues, but the trend is slowing.
- Technicals suggest that the coin will rebound in the coming weeks.
Bitcoin traded near $84,700 on Sept. 25 after retreating from a Monday high above $87,000. This downward movement aligned with climbing U.S. Treasury yields and a cooling pace of spot Bitcoin ETF inflows. Additionally, a $351.6 million security breach at Bitget introduced another layer of risk for digital asset traders.
According to CoinMarketCap, BTC staged a modest recovery from its Sept. 24 close near $84,379. While staying beneath the peak reached earlier in the week, Bitcoin avoided recording four consecutive losing sessions. The accompanying chart identifies $82,525 as the next vital technical support level to monitor.
Spot Bitcoin ETF Inflows are Slowing
American investors kept purchasing additional Bitcoin through the week. Figures indicate that these investment vehicles attracted over $190 million on Thursday, lifting cumulative inflows past $57.4 billion.
Even so, indicators point to a deceleration in momentum. The funds pulled in more than $998 million on Monday, $714 million on Tuesday, and $346 million on Wednesday.
A similar monthly pattern is visible. These products have accumulated $2.5 billion in assets over the month, dropping from $3.5 billion in the previous month.
On the bright side, these allocations have generated net positive inflows for the year, recovering from heavy losses sustained earlier. For instance, the funds experienced $4.5 billion in redemptions in June alongside $2.43 billion in May.
This loss of momentum has coincided with ongoing turbulence in the bond market. Statistics reveal that the 10-year U.S. Treasury yield climbed to a 20-year peak of 5.12%, while the 30-year yield advanced to 5.4%. Sovereign bond yields in nations like Germany and France also extended their upward climb during the week.
Crude Oil Prices are Soaring
Simultaneously, crude oil prices stayed elevated, with Brent and West Texas Intermediate (WTI) advancing to $106 and $93, respectively. Persistent strength in oil prices stems from growing expectations that the conflict between the U.S. and Iran will persist indefinitely.
These escalating petroleum prices have driven gasoline and diesel expenses to multi-year highs. Diesel surged to a record $6.50, and this upward trajectory could persist due to refining difficulties across major nations. Consequently, speculation has grown that the Federal Reserve and other central banks might enact a 0.25% interest rate hike later in the year.
Meanwhile, questions regarding cryptocurrency security emerged following a major breach at prominent exchange Bitget. The firm disclosed an estimated $351 million in unauthorized transfers originating from its wallets, prompting a temporary suspension of customer withdrawals. In an official statement, CEO Gracy Chen maintained that client funds remain secure and are fully backed by the Bitget User Protection Fund, which holds upwards of $464 million.
Ultimately, however, the security incident is not expected to exert a lasting negative influence on Bitcoin and other cryptocurrencies, given that the sector has endured more severe events historically. Precedents include previous hacks at Bybit, Poly Network, LuBian, and FTX, alongside the dramatic collapses of platforms like FTX, Mt. Gox, and Terra.
Bitcoin Price Technical Analysis
The daily chart illustrates a recent multi-day correction for Bitcoin, sending it down from Monday’s peak of $87,430 to a level of $84,180.
Bitcoin is nearing a retest of the critical $82,525 support floor, which marked its high point in both May and September of this year. Within technical analysis, a break-and-retest setup is widely viewed as a classic bullish continuation signal.
Furthermore, Bitcoin continues to hold above the Strong pivot reverse level mapped by the Murrey Math Lines indicator and remains positioned above the Supertrend metric. These factors point to a strong probability of a price recovery, potentially targeting the ultimate resistance ceiling at $87,500. Conversely, a breakdown beneath the $80,000 support threshold would invalidate the bullish thesis.
This article is for informational purposes only and does not constitute financial or investment advice. Technical projections may not materialize.