Bitcoin prices remain weak today despite the softness we’re seeing in USD and the broader stabilisation in risk assets. BTC has tracked the move lower in tech markets in recent weeks as AI funding fears and uncertainty after the US midterms saw tech stocks plunging. Hawkish Fed expectations on the back of recent US data strength have also been a headwind for crypto prices leading to an exodus in capital from BTC ETFs. BTC is now down around 16% from the Q3 highs and looks vulnerable to continued weakness if today’s break below 75,370 holds.

Huge ETF Outflows

The downturn in BTC from those Q3 highs has been accompanied and fuelled by a sharp shift in institutional positioning. BTC ETF flows have seen their highest level of outflows in 4 months as of Friday following a further $640 million in outflows. Alongside the US midterms result which has raised uncertainty over the regulatory path for the crypto word, a major hack at leading crypto broker Binance has also hit sentiment leading to heavier selling as players turn away from crypto for now. ETFs ended last week with outflows of $1.3 billion, the highest since June. Against this backdrop, BTC looks vulnerable to continued downside for now.

Technical Views

BTC

The sell off in BTC has seen price breaking below the $75,370 level. If this breach is sustained, focus is on a continuation lower towards the $69,605 level next, in line with bearish momentum studies readings.

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Written byleos James Harte

With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.