Bitcoin Price Falls to $108,000 as Spot ETF Inflows Surpass $219 Million
Bitcoin experienced a sharp decline to $108,000, unable to surpass $113,000. This drop coincides with the end of a prolonged outflow streak for Bitcoin ETFs.
ETF Outflows End with $219M Inflows
- On August 25, Ethereum spot ETFs recorded $444 million in inflows, while Bitcoin ETFs saw $219 million.
- Prior to this, Bitcoin ETFs faced six consecutive days of outflows, attributed to retail traders reacting to market fears.
- August 26 marked a shift as all twelve Bitcoin ETFs reported no outflows.
- Fidelity's FBTC led inflows with $65 million, followed by BlackRock's IBIT at $63.38 million.
Derivatives Market: Excessive Optimism Raises Liquidation Risk
- Positive funding rates on Binance during Bitcoin's decline indicate traders are maintaining leveraged long positions.
- If the price continues to fall, these positions may lead to significant liquidations and further sell-offs.
Bitcoin Price Analysis: Key Levels to Watch
- Current price action around $109,800 has dropped below short-term support, indicating potential deeper corrections.
- Immediate support is at $108,000, with critical demand zones at $105,000 and $100,000.
- Resistance levels to reclaim for bullish momentum are at $117,800 and $121,300.
- Failure to hold $108,000 could push Bitcoin toward $100,000, while reclaiming key resistance might set the stage for new all-time highs.
Momentum indicators suggest bearish pressure, with the RSI showing weakening strength and capital outflows evident in the Chaikin Money Flow.