Tax Concerns: $161 Million BTC & ETH ETF Selloff!

Tax Concerns: Selling Off $161 Million BTC & ETH ETF! - Bitcoin could drop 6.5% to reach the next support level at $77,400 if it remains below the 200 EMA. - Ethereum could decline 15% if it breaks the critical threshold of $1,780. Tax tensions have impacted the cryptocurrency market, with many assets experiencing significant price drops as investors implement strategies ahead of today's announcement. Tax Concerns in the Cryptocurrency Market Since Donald Trump took office as US President, the cryptocurrency market has sharply declined and shows signs of further reduction as his tax measures show no signs of ending soon. On April 2, a cryptocurrency analyst shared on X (formerly Twitter) that spot Bitcoin ETF funds experienced an outflow of $157.8 million, while Ethereum spot ETF funds saw an outflow of $3.6 million on April 1. This indicates investors are withdrawing from these assets. Large outflows are typically seen as a bearish sign, potentially creating selling pressure and leading to further price declines. Meanwhile, the X post also noted that institutions are reducing risks ahead of today's tax announcement. Current Price Trends Despite uncertainties, BTC and ETH prices remain positive, with increases of 1% and 0.35% respectively in the past 24 hours, unlike other cryptocurrencies. According to CoinMarketCap data, BTC is trading near $84,300, while ETH is close to $1,860. However, these price increases show signs of fading, with daily charts indicating potential decline. Bitcoin has successfully retested breaking the rising price channel and now faces potential price drops after encountering resistance at the 200-day EMA on the daily timeframe. Based on recent price movements and current market sentiment, if BTC remains below the 200-day EMA, there's a high likelihood it could drop 6.5% to the next support level at $77,400. The chart shows the importance of BTC's 200-day EMA on the daily timeframe. Ethereum Price Analysis and Critical Levels Meanwhile, Ethereum is approaching a critical level at $1,780. If ETH continues to decline and breaks this level, there's a high probability it could drop 15%, potentially bringing the price down to $1,550. The daily chart of Ethereum shows $1,780 as a crucial level that could determine ETH's next movement. Traders' Bearish Perspective on BTC and ETH On-chain analysis data from Coinglass shows traders are currently over-leveraged, with critical levels at $83,320 below and $85,960 above. They have built long and short positions of $811 million and $941 million respectively, indicating bears are currently in control. Moreover, higher bets on short positions are likely to push prices lower, serving as a warning for BTC. Conversely, traders appear strongly bearish on ETH. Data shows ETH's over-leveraged range is from $1,932 to $1,840, with traders building $541 million in short positions and $185 million in long positions over the past 24 hours. This suggests bears are in control, potentially due to the upcoming tax announcement.