NEW DELHI (CoinChapter.com) — It seems investors’ love for Bitcoin (BTC) waned in the week beginning Feb 13. BTC investment products witnessed nearly $25 million in weekly outflows, per the latest report from digital asset investment firm CoinShares.
However, despite the outflows, the recovering crypto market helped push the assets under management (AUM) value of the ETPs to $30 billion, their highest level since Aug 2022.
Overall, the digital asset investment instruments saw a total outflow of $32 million, with Bitcoin accounting for the lion’s share of the outflows.
On the other hand, investment products that focus on shorting Bitcoin enjoyed inflows of $3.7 million. As such, it seems market participants do not have confidence in the ongoing crypto market rally.
The outflow worsened around Feb 16 when BTC price closed above $24,000 for the first time since Aug 2022. ETP investors remained negative despite Bitcoin’s improved price action that saw BTC price appreciate by over 10% between Feb 13 and Feb 19.
However, improved market sentiment attracted some inflows later in the week ending Feb 19.
Additionally, mounting regulatory pressure, especially in the US, might have been another reason for the increased outflows.
BTC Price Struggling To Flip $25K
Bitcoin price moved above $25,000 on Feb 20 after bulls helped the token rise 5.3% to form a daily high near $25,100. However, long upper wicks on recent BTC price daily candles suggest bears are aggressively defending the $25,000 price band.
Furthermore, the relative strength index for Bitcoin is near the overbought threshold of 70, clocking at 65.9 on the daily chart. The RSI level leaves little breathing room for a BTC price up-move since traders usually consider overbought RSI a sell signal.
Hence, the BTC price risks dropping to test support near $24,400 if the price rally fails to flip $25,000. Moreover, breaching the immediate support level could result in Bitcoin price falling to support from its 20-day EMA (red wave) near $23,300 before recovering.
On the other hand, should the rally continue, BTC price could make an attempt to flip resistance near $25,300. Breaking and holding above immediate resistance might help Bitcoin price challenge resistance near $26,200 before downside corrections pare gains.
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