- The price of Bitcoin has fallen by more than 7% in the past seven days.
- Selling pressure on Bitcoin was high.
Bitcoin [BTC] has been struggling for several days as the price fell below $63,000. A major reason behind this sluggish price action could be declining interest in ETFs among the top players.
However, data shows that the trend could soon change. Let’s take a closer look at why Bitcoin is in trouble and whether there are chances of a trend reversal.
Why has Bitcoin fallen?
CoinMarketCaps facts revealed that the price of BTC has fallen by more than 7% in the past 24 hours. In the last 24 hours alone, the price of the king of cryptos fell by more than 4%.
At the time of writing, BTC was trading at $61,360.70 with a market cap of over $1.2 trillion.
While several factors may be at play, one of the main reasons behind this decline may be the decline in BTC ETFs.
As per earlier AMBCrypto report, As of June 21, the Fidelity Wise Origin Bitcoin Fund (FBTC) was hit the hardest with outflows totaling $44.8 million.
This was followed by Grayscale Bitcoin Trust (GBTC), which saw outflows of $34.2 million in one day. However, not all Bitcoin ETFs saw significant drawdowns.
IBTC at BlackRock remained stable, with no days of withdrawals either during or before this time.
A trend reversal for BTC?
Amid all this, AMBCrypto’s analysis of Glassnode’s data revealed an interesting development. According to our analysis, the price of BTC fell below its market bottom for the first time in 2024, as shown by the Pi Cycle Top indicator.
For the uninitiated, the Pi Cycle indicator is composed of the 111-day moving average and a 2x multiple of the 350-day moving average of Bitcoin’s price. This suggested that there was a good chance that BTC would turn bullish again.
If that proves to be the case, BTC could reach $91,000 in the coming weeks.
Source: Glassnode
To check if BTC was waiting for a trend reversal, AMBCrypto analyzed CryptoQuant’s data. We found that selling pressure on BTC was high as the net deposits from n exchanges were high compared to the average of the past seven days.
The Coinbase Premium was also red, meaning selling sentiment was dominant among US investors. Additionally, BTC’s aSORP was red, meaning more investors were selling at a profit.
In the middle of a bull market, this could indicate a market top.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2024-25
The technical indicator MACD also showed a clear bearish advantage on the hand, indicating a further downtrend. However, BTC’s Relative Strength Index (RSI) was about to enter the oversold zone.
This could increase buying pressure and in turn put an end to the bearish price action.
Source: TradingView