Bitcoin Wobbles on Profit-Taking, Ark ETF Bleeds Outflows

Bitcoin (BTCUSD) fell over $7,000 from a high of $71,754 due to profit-taking, reaching a low of $64,545. It currently trades around $66,094. ARK 21 Shares Bitcoin ETF experienced its first significant daily outflow of $87 million, exceeding Grayscale BTC ETF.

Bitcoin Wobbles Amid Profit-Taking, ARK ETF Records Heavy Outflows

Bitcoin (BTCUSD) has experienced a substantial decline, shedding over $7,000 from a recent peak of $71,754. The cryptocurrency's value has plummeted to a low of $64,545 and is currently hovering around $66,094. This sharp sell-off is attributed to profit-taking, as investors cash in on recent gains.

Notably, Cathie Wood's ARK 21 Shares Bitcoin ETF has witnessed its first significant daily outflows, amounting to over $87 million. This contrasts with the Grayscale BTC ETF, which has not experienced comparable outflows.

Factors Influencing Bitcoin's Price Action

US Markets:

• The NASDAQ, which traditionally exhibits an inverse relationship with Bitcoin, has experienced a bullish rally. However, its gains have been trimmed by over 2.5%, as the likelihood of a rate cut in June has diminished. A sustained decline below 18,000 could push the index towards 17,700 or even 17,300.
• The CME Fed watch tool indicates an increased probability of no rate cut in June, rising to 62.10% from 55.20% the previous day.

Technical Analysis:

• On the 4-hour chart, BTCUSD is trading beneath its short-term moving averages (21 and 55 EMA) but above its long-term moving average (200 EMA).
• Immediate support lies at $64,500. A break below this level could lead to a further decline towards $63,000, $61,800, and ultimately $60,000.

Bullish Scenario:

• The primary supply zone is situated at $75,000. A decisive breach above this barrier would confirm a bullish continuation, potentially propelling Bitcoin towards $80,000.
• A secondary resistance level exists at $80,000. A close above this level could target $100,000.

Trading Strategy:

• Consider buying Bitcoin on dips around $60,000, with a stop-loss order placed near $57,000 and a target price of $75,000.

It remains crucial to monitor the aforementioned factors, particularly the sentiment in US markets and the technical indicators, to assess Bitcoin's future price trajectory.