The price of Bitcoin (BTC) is consolidating in a range between $62,000 and $64,700, as current data suggests a short-term consolidation in the market. Bitcoin is trading around $63,800 on Tuesday, reflecting uncertainty and waiting among traders. Weak inflows of ETFs and limited buying pressure in the spot market indicate a state of anticipation among investors.
Data on the chain suggests that some bitcoin holders are taking profits, which significantly affects institutional demand. According to Santiment’s Network Realized Profit/Loss (NPL) Index, the coin has seen a significant rise in return on investment (ROI) as the NPL index moved from 553.43 million to 1.33 billion between September 19 and 20, showing that many investors are making good profits under these conditions.
On the other hand, the Bitcoin Coin base Premium Index from Crypto Quant shows a slight decline in institutional demand, as this index measures the gap between the price of Coin base Pro and the price of Binance. reflecting the behavior of investors with large portfolios. The index fell from 0.021 to -0.001 between Saturday and Monday, showing that demand from whales has eased slightly, contributing to the short-term consolidation of the Bitcoin price.
Moreover, Coinglass’s data on the Bitcoin Spot Fund indicates weakness in buying pressure in the market. On Monday, the fund saw moderate inflows of $4.50 million, reflecting a slump in institutional demand and reinforcing the idea of short-term consolidation in the price of Bitcoin. Overall, these indicators indicate that the market is in a suspense-and-see phase, as investors await more clarity on the future directions of the cryptocurrency.
Chinese stimulus pushes Bitcoin towards potential breakout of $78,000
Bitcoin (BTC) is poised for a major breakout towards $78,000 in the coming weeks, based on technical analysis of the price chart and the latest stimulus measures in China. Liquidity injected by China’s central bank is expected to boost demand for bitcoin, suggesting new price levels are possible.
On September 24, the People’s Bank of China (PBOC) announced plans to inject about $140 billion into the financial system by reducing the reserve requirement ratio by 50 basis points. The move aims to support the struggling real estate market and the wider economy. The market has responded positively to the news, with analysts expecting this liquidity to boost demand for digital assets.
Jamie Coates, senior crypto analyst at Real Vision, noted that this stimulus package will be positive for Bitcoin, adding that it may prompt other central banks to take similar steps in the future. Coats commented: “Global central bank liquidity has reached its lowest levels for this cycle, and now we have to watch other central banks follow this approach.”.
Historically, Chinese stimulus packages have affected risky assets such as Bitcoin. For example, after the People’s Bank of China injected $367.7 billion of liquidity in October 2023 and another $140 billion in January 2024, Bitcoin saw a rise of more than 100%.
Although the ban on cryptocurrency mining in China since 2021 has reduced the direct relationship between Chinese liquidity and Bitcoin’s performance, the impact of global liquidity remains strong. According to Coats, stimulus measures in China could lead to significant changes in global risk appetite. Currently, Bitcoin is testing the upper trend line of the science pattern, with a potential breakout around $78,000. If it fails, the price may see a decline towards the lower trend line at the 0.0 Fibonacci support level of around $5.
Bitcoin and Ether funds perform differently with contradictory flows
Bitcoin spot exchange-traded funds (ETFs) attracted $4.56 million in inflows, while ETFs saw huge outflows of $79.21 million on Monday.
Mixed Day for Cryptocurrency ETFs
Spot Bitcoin exchange-traded funds had a positive day on Monday as three funds attracted inflows during the session. Fidelity’s FBTC topped the list, raising $24.93 million, followed by Blackrock’s IBIT fund. , which earned $11.54 million. The third on the list was Grayscale’s Mini Bitcoin Trust, raising $8.42 million. However, Grayscale’s largest ETF, GBTC, wiped out some of these gains with a loss of $40.33 million on the same day. , suggesting new price levels are possible.
Inflows of $4.56 million pushed total net inflows across all 12 ETFs since January 11, 2024 to $17.7 billion. Monday’s trading volume was around $949.73 million, and these 12 funds now hold a total of $57.91 billion in bitcoin reserves – equivalent to 4.63% of bitcoin’s market capitalization as of September 24. While bitcoin ETFs made gains, their Ether counterparts did not share the same luck. , after the People’s Bank of China injected $367.7 billion of liquidity in October 2023 and another $140 billion in January 2024, Bitcoin saw a rise of more than 100%.
Nine Ethereum exchange-traded funds saw $79.21 million in outflows on Monday. The only bright spot was Bitwise’s ETHW, which fetched $1.34 million. However, it was the ETHE from Grayscale is the biggest drag factor, losing $80.55 million. The remaining seven ETFs of Ether had a neutral day with no gains or losses to report.
