Bitcoin Price Flashes a Double-Bottom as BTC ETFs Hit a YTD Record

Key Insights

• Bitcoin price has formed a double-bottom pattern on the daily chart.
• Spot Bitcoin ETFs have shed over $2.92 billion in assets this month.
• The Crypto Fear and Greed Index moved to the extreme fear zone.

Bitcoin price dropped below the important support of $60,000 on Wednesday. Then, it crawled back to the current $61,000. BTC has formed a rare bullish pattern, pointing to a short-term rebound despite the ongoing ETF outflows.

Bitcoin Price Has Formed a Double-Bottom Pattern

BTC price dropped to a low of $59,100 earlier this month. Then, it rebounded to a high of $67,175, its highest point on June 15. It then retreated and retested the previous monthly low of $59,100. It has formed a double-bottom pattern whose neckline is at $67,176.

This pattern is one of the most common bullish reversal signs. It is usually a signal that bears are afraid of placing trades below the price. The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bullish divergence pattern.

Therefore, there is a possibility that the coin may bounce back. That could only happen as long as it remains above the double-bottom level of $59,102. A drop below that level will point to more downside, potentially to the psychological level of $50,000.

Bitcoin ETF outflows have hit a record this month

The ongoing Bitcoin price retreat happened as investors rotated to the booming stock market. There, top indices like South Korea’s Kospi, Japan’s Nikkei 225, and the US Nasdaq 100 have soared to their record highs.

Data shows that spot Bitcoin ETFs have shed over $2.9 billion this month, the highest amount this year. They lost over $2.43 billion last month, bringing their net inflows since inception to $52.7 billion.

Spot Bitcoin ETF outflows have jumped sharply. That’s because of the ongoing stock market rally that has pushed investors into equities. Data shows that stock ETFs have gained over $1 trillion in assets this year.

The Vanguard S&P 500 ETF (VOO) has added over $87 billion this year, bringing its assets under management to $1 trillion.

Potential Catalysts for BTC Price

Bitcoin has some potential catalysts going forward. For example, data shows that the Fear and Greed Index has crashed to the extreme fear zone of 18 from the year-to-date high of 55.

The Fear and Greed Index is calculated using key metrics. That includes Bitcoin’s momentum, volatility, derivative markets, and key proprietary data to assess the psychological state of the market. In most cases, Bitcoin prices normally bounce back whenever the index moves to that extreme level.

A good example of this is what happened in February when the index dropped to the extreme fear zone of 11 when Bitcoin dropped to $60,000. It then bounced back and reached a high of $82,286 in May.

The same thing happened in April last year when it dropped after Trump announced his reciprocal tariffs. Bitcoin dropped to $73,970, and then rebounded to a new record high at the time.

BTC price may benefit from the falling crude oil prices. Brent, the global benchmark, dropped to $72, while the West Texas Intermediate (WTI) fell to $69. This retreat may be bullish for the crypto because of the impact on the Federal Reserve.

In its recent interest rate decision, the bank decided to leave rates unchanged between 3.50% and 3.75%. Officials also hinted that they would hike interest rates later this year. It’s a move that will impact risky assets like Bitcoin and stocks.

The falling oil prices mean that US inflation will likely start falling from the current 4.2% to nearly 2% later this year. Bitcoin and other cryptocurrencies often do well when the Fed is signaling that it will cut rates.

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