Bitcoin, the leading cryptocurrency, maintained its sideways movement in the $82,000-$85,000 range on the first day of the new quarter, while the market’s focus remains on money flows into sp
Bitcoin, the leading cryptocurrency, maintained its sideways movement in the $82,000-$85,000 range on the first day of the new quarter, while the market’s focus remains on money flows into spot Bitcoin ETFs and the high supply zone around $84,000.
At this point, Bitfinex analysts stated in their latest assessment that one of the most important resistance zones facing Bitcoin is the $84,000-$86,500 range.
According to Bitfinex, there is a high cost supply of approximately 1.39 million BTC in this price range, and ETF demand needs to regain strength for Bitcoin to absorb this high supply zone between $84,000 and $86,500.
It is anticipated that if the price reaches this level again, investors who are close to their cost levels may close their positions at break-even, creating selling pressure.
Spot Bitcoin ETFs in the US saw a net outflow of $148.7 million on Wednesday, ending a nine-day streak of inflows. Total inflows over that period reached approximately $3.08 billion. However, ETF inflows have also slowed significantly in recent days. Daily inflows, which reached approximately $1 billion on September 21st, have gradually declined in the following days.
At this point, Bitfinex analyzed the current situation using the BAER (Bitfinex Absorption-to-Emission Ratio) indicator to measure the extent to which spot Bitcoin ETFs have absorbed the new supply in the market.
According to Bitfinex, the BAER indicator dropped from 25.6 on September 21st to 1.8 on September 29th. Bitfinex states that the indicator needs to rise to approximately 5, or about $190 million per day in ETF purchases, to meet the 1.39 million BTC supply between $84,000 and $86,500.
In conclusion, Bitfinex analysts state that for the price to remain above $84,000 and break through this supply zone, ETF inflows need to recover and return to approximately $190 million per day.
*This is not investment advice.
Continue Reading: Bitfinex Warns: “This Obstacle Must Be Overcome for Bitcoin’s Rise to Continue!” Here Are the Details
