Bitcoin holds above $62,000 despite slight decline in ETF inflows

• Bitcoin price halts recent positive move, holds above key psychological level of $62,000.
• On-chain data suggests neutral sentiment among BTC traders.
• U.S. Bitcoin ETF spot flows saw a slight week-over-week decline.

Bitcoin (BTC) is halting its recent positive move and stabilizing above its key psychological level of $62,000 on Monday, after a nearly 7.5% gain last week. On-chain data suggests neutral sentiment among BTC traders on a rise in Bitcoin price as more traders are betting on the asset to rise. However, US spot Bitcoin exchange-traded funds (ETFs) saw a slight decrease in inflows week-over-week.

Daily Market Reasons: Bitcoin EFTs saw a slight decrease in inflows last week

• Institutional flows saw a slight decline in inflows last week compared to the previous one. Inflows into US spot Bitcoin ETFs fell slightly from $403.90 million to $397.20 million in the second to third week of September, according to Coinglass data. This 1.66% drop is small compared to the total Bitcoin reserves held by the 11 US spot Bitcoin ETFs, which total $50.68 billion in assets under management (AUM).

Bitcoin Spot ETF net flow chart

Bitcoin ETF AUM chart

• Coinglass’ Bitcoin long-short ratio is also 1.0, signaling neutral investor sentiment. This ratio reflects bullish sentiment in the market when it is above 1, suggesting that more traders anticipate the asset’s price to rise. The opposite happens if it is below 1.

Bitcoin chart from long to short

• Ki Young Ju, founder and CEO of CryptoQuant, an on-chain data and analytics company, POSTED on Twitter, “Bitcoin hashrate dominance shifts to US mining companies.” Mr. Ju also said, “Chinese mining pools operate 55% of the network, while US pools manage 40%.” This change in Bitcoin hashrate could be a positive sign for Bitcoin, as US pools mainly cater to institutional miners in America. In contrast, Chinese pools support relatively smaller miners in Asia.

BTC Mining Pool Hashrate Chart

Technical analysis: Bitcoin eyes for $65,000

Bitcoin broke through an uptrend line and 100-day exponential moving average at $61,000 on Wednesday and rose 3% over the next four days. BTC price stopped the recent pullback over the weekend but managed to hold its key psychological level of $62,000. At the time of writing on Monday, it is trading around the $63,340 level.

If the $62,000 psychological support continues to hold, BTC could continue its upward move and retest the daily resistance level at $65,379.

The MACD (Moving Average Convergence Divergence) indicator is supporting Bitcoin’s rise, signaling a bullish crossover on the daily chart. The MACD line (blue line) moved above the signal line (yellow line), giving a buy signal on September 12th. However, the histogram bars, even though in green above the neutral zero line, are retreating, suggesting that the upward momentum is fading.

In addition, the Relative Strength Index (RSI) on the daily chart is declining near the 60 level, reflecting declining bullish momentum.

BTC/USDT Daily Chart

However, if Bitcoin fails to find support around $62,000 and fails to close below the September 17 low of $57,610, it could extend the 3% decline to retest daily support around $56,000.