Technical Analysis:
BITCOIN is overall bearish and currently it is trading around 50000 at a weekly support but we might see price either retracing a bit and selling or price might continue to dip towards 42000 range.
We have a support at 40000 zone too from where we can expect a retracement to the upside.
Fundamentals:
Bitcoin exchange-traded funds (ETFs) experienced their most significant outflow in three months on Aug. 2. This large-scale withdrawal fueled speculation about the potential for a new bear market. Investors are now closely watching to see if these ETFs will attract new buyers at lower prices or if the selling pressure will continue to intensify.
Large-scale withdrawals from Bitcoin ETFs are typically indicative of a broader market sell-off, which can further depress Bitcoin’s price. The recent $237m outflow represents the largest single-day withdrawal in three months and the fourth largest since the ETF’s launch in January. This significant outflux highlights the current bearish sentiment among investors.Crypto Market Under Pressure from Potential Surplus Supplies and Government Sales
The crypto market is also grappling with potential government Bitcoin sales and the possibility of a surplus supply from tokens returned to creditors in bankruptcy cases.
Moreover, the recent liquidation of $830.8m worth of bullish crypto derivatives positions within a 24-hour period, as indicated by , suggests that leveraged bets are unraveling.
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