Bitcoin Consolidation Persists as Bullish Sentiment Wanes, Outlook Turns Bearish

Bitcoin has entered a smaller trading range within the ongoing broader range of $60.7k-$73k. Bullish momentum has weakened, and selling pressure may increase. Whale activity and ETF inflows are slowing down, indicating a lack of demand and bearish sentiment. Technical indicators suggest that a further decline to $60k or a continuation of range-bound trading is likely.

Bitcoin Consolidation Persists as Bullish Sentiment Wanes

Overview

Bitcoin (BTC) has been trading within a range of $73,000 to $60,700, indicating a period of consolidation. Despite earlier optimism that bulls would defend the $64,500 support level, a rejection at $67,000 and a subsequent drop to $62,800 have weakened bullish conviction. This development coincides with a decline in whale activity and slowing inflows into Bitcoin exchange-traded funds (ETFs).

Factors Contributing to Consolidation

• Negative ETF Inflows: Crypto analyst Whale Panda observed that Bitcoin ETF flows have been negative for three consecutive days, indicating a lack of demand. Blackrock's IBIT ETF experienced a third day of zero inflows after receiving significant inflows earlier this month.
• Declining Whale Transaction Count: Crypto analyst Ali Martinez noted that the number of whale transactions has been declining since mid-March, further reducing bullish pressure.
• Waning Futures Market Sentiment: The Open Interest and Funding Rate in Bitcoin futures markets have diminished since the beginning of April, suggesting a bearish sentiment among speculators.

Technical Analysis

Technical analysis of Bitcoin's price chart reveals a short-term range between $66,900 and $59,700. Within this range, the price has been fluctuating below the neutral 50 level on the Relative Strength Index (RSI) indicator, indicating bearish momentum.

The breach of the mid-range mark at $63,300 over the weekend suggests the potential for a further decline towards the $60,000 level.

Outlook

The combination of declining whale activity, negative ETF inflows, and waning futures market sentiment indicates that bullish conviction for Bitcoin has weakened considerably. It is likely that the current consolidation will continue, with a potential downward trend towards the $60,000 support level.

Investors should closely monitor the price action and market sentiment indicators to identify potential breakout points and make informed trading decisions. The lack of sustained demand and the waning technical momentum suggest that the cryptocurrency market may experience further volatility in the near term.