Bearish forecast
Sell the BTC/USD pair and set a take-profit at 69,000.
Add a stop-loss at 78,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 78,000.
Add a stop-loss at 69,000.
Bitcoin price remained under intense pressure on Monday morning as demand continued falling. The BTC/USD pair dropped to 73,550, continuing a downward trend that started on May 10 when it peaked at 82,650. This retreat may continue as the coin has formed a highly bearish chart pattern and ETF outflows have continued.
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Bitcoin ETF Outflows Point to More Selling
The BTC/USD pair continued its recent downward trend amid signs that demand is still fading. One key metric of all this is that investors have continued to dump their spot Bitcoin ETFs in the past few weeks.
These funds accumulated over $1.6 billion in inflows in the first six days of May and then erased these gains. In total, the funds lost over $2.43 billion in assets in May after adding inflows of $3.29 billion in the previous two months, combined.
American investors are likely selling Bitcoin ETFs because the coin continues to underperform other assets. For example, the coin has dropped by over 20% from its all-time high, while popular indices like the Nasdaq 100 and S&P 500 have surged to a record high.
The US stock market has surged this year because of the strong corporate earnings and the ongoing artificial intelligence boom. This boom has helped to add more companies to the trillion dollar club, with Micron being the latest one.
Bitcoin has also continued to struggle amid the falling demand in the futures market, where its open interest has continued falling in the past few days. This open interest dropped to $55 billion from the year-to-date high of over $60 billion.
The Crypto Fear and Greed Index has also slumped from the greed zone of 65 to the fear zone of 35. Bitcoin and other coins often struggle whenever there is a sense of fear in the market.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has slumped in the past few days, moving from a high of 82,650 on May 9 to the current 73,500. It has moved to the lowest level since April as the sell-off gains momentum.
Bitcoin has dropped below the 50-day Exponential Moving Average (EMA). At the same time, the Average Directional Index (ADX) has jumped to 25 and is pointing upwards. This indicator is usually a sign that a trend is accelerating.
Therefore, the BTC/USD pair will likely continue falling this week, with the next key target being at 69,000. A move above the key resistance level at 78,000 will point to further gains.
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