Bitcoin Price Remains Steady Near $87K as ETF Outflows Slow – Is a Reversal Approaching?

Summary:
Bitcoin’s price remains stable near $87,000, following a notable slow in outflows from its spot exchange-traded funds (ETFs). After a series of significant outflows, market analysts are speculating that the conditions could soon favor an upward price movement.

Key Takeaways

Bitcoin price has stabilized around $87,000 after a significant slowdown in ETF outflows.
The recent data indicates that $19.29 million was withdrawn from Bitcoin ETFs on December 29, marking a pause in six days of heavy outflows.
Analysts note that the halting of selling by long-term Bitcoin holders might signal a potential price reversal.
Key support and resistance levels for traders to watch include $86,000 as support and $91,500 as resistance.

Bitcoin price at a standstill near $87k as ETF outflows slowdown.

Market Overview: Bitcoin's Stagnation and ETF Dynamics

On Tuesday, Bitcoin's price remained steady near the $87,000 mark, reflecting a reduction in the outflows from its spot ETFs for the first time since December 18. As reported by SoSoValue, the 12 spot Bitcoin ETFs experienced net outflows of $19.29 million on December 29, ending a streak of six consecutive days with triple-digit outflows that saw approximately $1.1 billion leave these funds.

On that day, Invesco’s BTCO led the outflows, recording $10.41 million in redemptions, followed by BlackRock’s IBIT with $7.92 million and ARK 21Shares’ ARKB with $6.66 million withdrawn. Fortunately, Fidelity’s FBTC managed to counter some of these losses by attracting $5.7 million. The remaining ETFs reported "zero" outflows for the day.

The slowdown in outflows suggests that institutional investors might be losing their eagerness to sell, creating an opportunity for new capital to enter the market if it continues to stabilize.

Previously, Bitcoin price reached an all-time high of $126,080 in October, driven by significant inflows into spot ETFs over preceding months. However, since then, approximately $4.6 billion has exited these investment vehicles. Given that institutional investors frequently influence market momentum, their net flow patterns are key to price movements and overall market dynamics.

Investor Sentiment and Price Patterns

Interestingly, some analysts observed that long-term Bitcoin holders have ceased selling their assets for the first time since July, as of December 29. Well-respected analyst Ted Pillows commented that this shift in selling pressure could indicate the potential for a price rally. "Things are looking good for a relief rally here," he stated.

Similarly, other commentators shared optimistic views. “Bitcoin will bottom out soon. A relief rally is on the horizon… Be prepared,” mentioned Crypto Caesar.

On the daily chart, Bitcoin price is forming a symmetrical triangle pattern since mid-November. This pattern is characterized by two converging trendlines, signaling a phase of consolidation that may precede a breakout.

Bitcoin price has formed a symmetrical triangle pattern on the daily chart.

A breakdown from the lower trendline typically points toward further decline, while a breakout from the upper trendline can lead to significant rallies. As it stands, BTC price is trading near the lower trendline, indicating it could be entering a crucial zone.

Momentum indicators have slightly favored the positive side but remain near neutral thresholds, suggesting potential consolidation. Renewed inflows from institutional investors could act as the catalyst needed for a structural recovery.

Key Price Levels to Watch

Presently, traders are vigilant regarding the $86,000 psychological support level. Should the price dip below this point, it could pave the way for a decline toward November's low of $82,175. Conversely, the $91,500 level, aligning with the 23.6% Fibonacci retracement level from October’s high to November’s low, stands as a critical resistance zone to observe.