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- Daily Chart: Bitcoin Price Stabilizes Amid Increasing Pressure on Weak Derivatives:
Despite withdrawals from spot ETF funds, Bitcoin price remains stable above the support level at $89,000. The Relative Strength Index (RSI) has risen to 43 on the daily chart, indicating a slowdown in bearish momentum.
A close above the direct downtrend resistance level, as shown on the same chart, could extend Bitcoin’s recovery above $90,000.
However, traders should temper their expectations as the Moving Average Convergence Divergence (MACD) shows a bearish crossover, with the MACD line below the signal line, indicating that the overall least resistance path is downward.
Daily chart of the BTC/USDT pair
The derivatives market remains a negative factor for Bitcoin, with open futures contracts decreasing to around $60 billion on Wednesday, down from $61 billion on Monday, and further to $66 billion on January 15. Further declines could lead to reduced interest and confidence in Bitcoin, especially among retail traders, making prices more susceptible to volatility.
Open interest in Bitcoin futures contracts | Source: Coin Glass.#GrowthPointsDrawRound16
The (ETFs) for spot Bitcoin continued to experience withdrawals for the second consecutive day, with $483 million pulled on Tuesday. The total cumulative inflows amount to approximately $57.3 billion, while the net asset value stands at $116.7 billion.
The resumption of investment flows last week led to an increase in total inflows by $1.42 billion, the highest since October. These flows contributed to pushing Bitcoin's price toward $98,000 on January 14, confirming the impact of ETFs on prices.
Bitcoin ETF Statistics | Source: SoSoValue
Spot Ethereum ETFs also experienced outflows on Tuesday, with investors withdrawing nearly $230 million. This outflow followed a five-day streak of inflows last week.
According to data from SoSoValue, the total cumulative inflows amount to approximately $12.7 billion, while the net assets are $18.4 billion.
Ethereum ETF Statistics | Source: SoSoValue
Meanwhile, XRP spot ETFs recorded their second outflow since launch in November. These US-listed funds experienced outflows of about $53 million on Tuesday, bringing the total cumulative inflows to $1.2 billion, and net assets to $1.3 billion.
XRP ETF Statistics | Source: SoSoValue