Bitcoin (BTC) daily chart registered a bearish three-blind mice pattern

Over the past 24 hours, Bitcoin tested the fair value gap, but BTC has struggled to establish bullish momentum from the $80,000 range low.

Bitcoin’s (BTC) daily chart registered a bearish three-blind mice pattern over the past three days, taking BTC’s value outside the long-term established range between $110,000 and $90,000.

Bitcoin 1-day chart. Source: Cointelegraph/TradingView

Over the past 24 hours, Bitcoin tested the fair value gap, but BTC has struggled to establish bullish momentum from the $82,000 range low.

The post Bitcoin sees largest ETF outflows as Fear & Greed Index hits lowest level since 2022 appeared first on Chain Link.

The collective spot ETFs market registered outflows of $2.4 billion this week, with Feb. 25 recording BTC’s largest ETF outflow of $1.13 billion since its inception.

Massive Bitcoin ETF outflows this week with $2.4 billion out of the collective spot ETFs and $3.4 billion total for February.

Yesterday saw the largest single-day BTC ETF outflows with $1.13 billion, the biggest since the product's launch. pic.twitter.com/96vM42hO8E

— SoSo (@SoSoValue) February 26, 2024

Overall, the spot BTC ETF market witnessed an outflow of $3.4 billion in February.

Demand for the spot BTC ETF declined during this week’s correction, and crypto analyst Adam suggested that historical data points to price reversals whenever large ETF inflows or outflows have occurred.

Interesting stat: Large (>$5B) Bitcoin ETF net flows have almost always coincided with price reversals.

Of the 14 instances of significant outflows or inflows, only one saw price move in the same direction as the flows. This occurred on 11/7 following Trump's victory, with a price surge and substantial inflows. pic.twitter.com/X1Z7yVj98w

— Adam (@Adam_McErlean) February 27, 2024

Adam pointed out that in 14 instances of significant inflows or outflows, Bitcoin price has aligned with the direction of those flows only once. This rare occurrence took place on Nov. 7, following Trump’s victory, when a price surge and substantial inflows were observed.

Adam said,

“This aligns with the narrative that increased institutional involvement tends to herald shifts in market direction.”

Likewise, the trader believed that dependent upon other confluent factors, “some relief rally” should be around the corner. However, Zaheer, an anonymous market analyst, said that the current drop in spot prices and ETF net flows was potentially due to the CME futures basis falling below 5%.

The analyst explained that most market participants unwound their positions once the risk-free rate range is broken. The gradual drop in CME futures open interest highlighted low investor confidence, which was further evidenced by low futures premiums.

Key metric shows Bitcoin hasn't peaked, has bullish year ahead: Analyst

Bitcoin Fear & Greed Index conveys investor

Cointelegraph reported that the Crypto Fear & Greed Index had reached its lowest level since 2022, projecting a score of 10 into “extreme fear.” According to Ben Simpson, the founder of Collective Shift, the current conditions could present a buying opportunity, as the simple strategy of buying into extreme fear and selling into greed has been a profitable move.

The Bitcoin Fear & Greed Index has hit its lowest level since 2022, reaching 10 and signaling "extreme fear."

The current conditions could present a buying opportunity, as Ben Simpson, the founder of Collective Shift, noted that a simple strategy of buying into extreme fear and selling into greed has been a successful move.

"Amazingly, a very simple strategy of buying Bitcoin when the Fear & Greed Index is in extreme fear (0-25) and selling when it’s in extreme greed (75-100) over the last seven years would have generated a staggering 34,000% return!" he said.

However, Axel Adler Jr, an onchain market researcher, pointed out that the Bitcoin Fear & Greed Index’s 30-day moving average is yet to drop below the 50th percentile.

Adler explained that the 30DMA dropping below the 50th percentile has historically signaled Bitcoin price reversals and upward trends, but the current index remains above this level. Adler suggested that the best course of action is to “wait” and see how the market trends over the coming days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The post Bitcoin sees largest ETF outflows as Fear & Greed Index hits lowest level since