BTCETF has been losing blood for three consecutive days! Analysts warn of possible further decline, will it drop to 'this level' next?

BTC hovering around 94,000, Spot ETF net outflow for 3 consecutive days

After soaring to a high of $108,000, BTC entered a correction mode. As of today (24th), it is still hovering around $94,000. At the same time, the US BTC Spot ETF also encountered unfavorable conditions.

The latest data from Farside Investors shows that BTCSpot ETF has experienced net outflows for three consecutive trading days.

For example, on December 19th, there was a large-scale net outflow of 671 million US dollars, followed by net outflows of 277 million US dollars and 258 million US dollars in the next two trading days, breaking the record of continuous net inflows for more than ten days in the past, reflecting the cautious attitude of ETF investors towards the current market.

Image source: Farside InvestorsBTC hovering around 94,000, SpotETF has seen net outflows for 3 consecutive days

Will BTC continue to fall? Analysts focus on 2 major support levels

According to Cointelegraph, BTC has fallen 15% since reaching a historic high last week.

Anonymous analyst Bitcoindata21 warns that the current technical outlook is not optimistic, with the volume-weighted average price (VWAP) retesting the bottom and encountering resistance on the upside, which is not a good sign for the bullish trend.

Source: X analyst pointed out that the volume-weighted average price (VWAP) is retesting the downside and continues to face resistance on the upside.

He predicts that BTC may retest the $92,000 support level, while the $85,000-86,000 range could be an ideal area for bullish 'All in'.

Another trader, CrypNuevo, holds a similar view. He said it's hard to imagine the market will see a V-shaped rebound too soon, and it's more likely to form a W-shape, or a complete retest of the lower shadow that appeared before. The $90,000 integer is an important psychological barrier.

Further reading: BTC surged and then fell back! Crypto big shots warn: there may be another major crash at this time, it is advisable to reduce positions in advance

BTC fell back to the 50-day moving average, and the RSI has dropped below 42

Senior analyst Rakesh Upadhyay pointed out that BTC has fallen back to the 50-day moving average ($93,383) level, and the 20-day moving average ($98,206) is gradually declining. The relative strength index (RSI) has also fallen below 42, indicating bearish pressure.

Upadhyay predicts that if the 50-day moving average support is completely broken, it may fall to $90,000, or even further test $85,000, which is consistent with the views of other analysts and traders mentioned above.

On the other hand, if BTC can break through and close above the 20-day moving average, it will be the first signal of a recovery in momentum, and there will be hope for a retest of the historical high of $108,353.

After the update of the Fed's hawkish policy, the overall economic sentiment remains fragile

Investors should be aware that as the Christmas holiday approaches and the Federal Reserve showed a hawkish stance last week, overall economic sentiment remains fragile.

CME's FedWatch data shows that the market expects only an 8.6% probability of a rate cut at the next FOMC meeting.

Source: The market expects that the probability of a rate cut at the next US FOMC meeting is only 8.6%.

The well-known financial media The Kobeissi Letter pointed out that 74% of central banks worldwide will cut interest rates in 2024, and there are risks in the Federal Reserve's policy shift as US inflation shows signs of rebounding.

As early as early December, analysts pointed out that the reduction in global liquidity may have a negative impact on the performance of BTC and the cryptocurrency market. In the uncertain macroeconomic environment, it may continue to affect the investment decisions of market participants.

Disclaimer: The market carries risks, and investments should be made with caution. Analyst views are for reference only. Users should consider a variety of indicators to determine whether to invest and consider whether any opinions, views, or conclusions in this article are applicable to their specific circumstances. Invest at your own risk.

The BTCETF has been bleeding for three consecutive days! Analysts warn that it may continue to fall, and then kill to "this point"? This article was first published in "Crypto City".