Bitcoin price has been experiencing downward pressure recently, with macroeconomic factors contributing to the challenges of major cryptocurrencies. However, Bitcoin price maintains its resilience thanks to the steady growth of exchange-traded funds (ETFs).
These funds play a crucial role in supporting Bitcoin price and provide an optimistic outlook for potential breakthrough in the coming months.
Bitcoin ETF, Real Investor Perspective
Despite the overall market weakness, Bitcoin ETFs have shown consistent fund inflows. Over the past few months, these ETFs have experienced only three net outflows, despite challenges such as the Israel-Iran conflict. In July, Bitcoin ETFs recorded inflows of $4.5 billion, bringing the cumulative inflows to $48.95 billion.
This demonstrates that institutional investors continue to view Bitcoin ETFs as an attractive option. However, in an interview with BeInCrypto, Mete Al, co-founder of ICB Labs, stated that Bitcoin has not yet completely separated from the stock market.
"There is still room for further separation from the stock market. Spot ETFs are connecting Bitcoin to Wall Street, but during risk-averse moments like the Israel-Iran conflict, cryptocurrencies did not maintain correlation with S&P. Translation: Separation is not dead and is expected to be temporary rather than permanent." – Mete Al, Co-founder of ICB Labs
Bitcoin's macro momentum is supported by a safe haven zone located between $100,000 and $103,000. According to recent IOMAP data, investors have purchased approximately 574,170 BTC worth $61.41 billion between $100,668 and $103,876.
Despite recent declines, Bitcoin has consistently rebounded within this range, providing stability. While a demand zone exists above this price range, it has not shown strong enough support to prevent further decline.
This demand zone suggests Bitcoin's potential to maintain levels above $100,000, a perspective also shared by Mete AI.
"This supply zone seems likely to persist a bit longer. This range has thick limit orders and in-the-money call options. Unless headlines close the price below $100,000, dip buyers will maintain that floor." – Mete Al, Co-founder of ICB Labs
BTC Price Breakthrough May Take Sufficient Time
Currently, Bitcoin is trading at $107,075 and struggling to secure support at the $108,000 level. This reinforces the descending wedge pattern strengthened over the past month. Failure to maintain $108,000 indicates the ongoing downward pressure Bitcoin faces in the market.
Historically, July has been a positive month for Bitcoin, with a median monthly return of 8.09%. This suggests Bitcoin could revive in July despite the current downtrend. However, this could also lead to another low point, potentially dropping below $101,000. This could lay the groundwork for a breakthrough towards $110,000.
Nevertheless, it's important to consider the worst-case scenario. If the broader market collapses, Bitcoin could fall below $105,000 and even reach $100,000. Losing support at these levels would invalidate the upward scenario, indicating Bitcoin could continue to face challenges.
