When price the goes down, people often wonder if it’s just a temporary dip or the start of a big decline. Right now, it looks like it might just be a temporary dip, but it’s important to keep an eye on how Bitcoin behaves around the key support level of $110,000.
On the other hand, is on a strong upward trend, with buyers trying to push prices past previous highs. If Jerome hints at lower , mentioned at the conference, turn into actual actions or more assurances, the bull market might continue into the second half of the year.
Bitcoin Outflow Raises Short-Term Alarm
Recent data, including info from SoSoValue, shows a significant outflow of $1.15 billion from Bitcoin by the end of last week, confirming the current price drop. Since Bitcoin ETFs were introduced, the flow of money into them has been a key sign of market strength. Recently, there’s been a slowdown in demand, with ETFs seeing the smallest increase in holdings since the end of April, only adding 11,000 coins in the past month.
Ethereum is also facing weaker demand from these investment products, causing a price dip from just below $5,000. The coming days will be important for seeing if both Bitcoin and Ethereum can hold their key price levels. If demand returns, this could create a good chance to join the long-term upward trend. Investors are also paying attention to upcoming US economic data, such as and , to gauge market conditions.
Bitcoin Struggles at $110,000
After Bitcoin hit its all-time high around $124,000, it entered a correction phase, and the support at $110,000 is now being tested. So far, there hasn’t been a strong buying response, suggesting that demand is weak in the short term. This raises the possibility that Bitcoin might drop below this support level and continue to decrease.
If Bitcoin falls below the $110,000 support level, the next target for sellers would be the support area below the significant psychological mark of $100,000.
Ethereum Maintains Upward Trend
Despite a broader range of fluctuations, Ethereum remains in an upward trend. The recent correction halted around the demand zone at 4,400. If buyers step in, this could trigger a new upward move, potentially pushing Ethereum past its previous high of $5,000.
When looking at the potential for a deeper decline, it’s important to note the cluster of support levels between $4,100 and $4,000. A break below this range would serve as a warning sign for buyers about the continuation of the upward trend.
****
InvestingPro provides a comprehensive suite of tools designed to help investors make informed decisions in any market environment. These include:
- AI-managed stock market strategies re-evaluated monthly
- 10 years of historical financial data for thousands of global stocks
- A database of investor, billionaire, and hedge fund positions
- And many other tools that help tens of thousands of investors outperform the market every day!
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.