Crypto Industry News:
The Coinshares report confirmed the fears of investors who fell in love with altcoins. The largest cryptocurrency has dominated inflows as investors expect it to deliver returns during a time of systemic uncertainty. Meanwhile, Bitcoin-based products and the vast majority of thousands of smaller cryptocurrencies are struggling with outflows.
According to the weekly Coinshares Digital Asset Fund Flows Report, digital asset investment products posted significant inflows of $137 million last week.
Bitcoin has become the dominant asset and has become the beneficiary of a massive portion, close to 99% of all recorded inflows by Coinshares. Domination is flourishing - the demanding macro environment makes investors simply 'do not want to mess around' with jumping into uncertain projects.
Inflows over the past four weeks totaled $742 million. This increase represents the most significant inflow since Q4 2021. This reaffirms investor interest in the digital asset space. Mainly Bitcoin itself.
Coinshares indicated that short investment products that allow speculating on the price of Bitcoin by betting on falls experienced their 12th consecutive week of outflows. A total of $3.2 million left this market segment. Investors are simply afraid to short Bitcoin right now, but in the short term, this could be a contrarian signal. Especially when we consider near-record levels of unrealized profit among short-term investors (STH).
Technical Market Outlook:
The BTC/USD pair has briefly made a new swing high and yearly high at the level of $31,740 and then pulled-back from the extremely overbought market conditions on the H4 time frame chart. Currently, the market is trading very close to the key short-term technical support seen at the level of $29,623. So far the bulls are bouncing up from the level, but in a case of a breakout lower, the next target is located at $28,446 (this level will work as the technical support and the line in sand for bulls). The intraday technical resistance is seen at the level of $30,447. The momentum is neutral to negative, which is not a good indication for bulls as any breakout below the level of fifty would trigger another leg to the downside.
Weekly Pivot Points:
WR3 - $30,637
WR2 - $30,432
WR1 - $30,347
Weekly Pivot - $30,227
WS1 - $30,141
WS2 - $30,021
WS3 - $29,816
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.