Bitcoin poised for decline as it faces resistance around $60,000

• Marathon Digital Holdings (MARA) announces a $250 million private offering of convertible senior notes to buy more Bitcoin.
• Lookonchain data shows that 10 Bitcoin Spot ETFs recorded a net outflow of 4,255 BTC worth $254.17 million on Monday.
• On-chain chain data shows negative signs for BTC, signaling a bearish trend ahead.

Bitcoin (BTC) is trading slightly down by 0.5% at $59,039 on Tuesday, struggling to recover from the 3.6% drop seen on Sunday. Continued outflows from US-listed Bitcoin Exchange Traded Funds (ETFs) on Monday and bearish signs from on-chain data appear to be a drag on Bitcoin’s price prospects in the near-term, outweighing the move from mining company Marathon Digital Holdings (MARA), which has laid out plans to raise $250 million to acquire more Bitcoin. 

Daily digest market movers: Bitcoin holds $58,000 as MARA announces $250 million funds to buy BTC

• Marathon Digital Holdings (MARA) announced on Monday a plan to offer $250 million in convertible senior notes maturing in 2031, targeting qualified institutional buyers to fund corporate initiatives and acquire additional Bitcoin.
• MARA announced that initial purchasers can acquire up to $37.5 million in notes within 13 days from the original issuance date. Under specific conditions, the company can redeem the notes for cash on or after September 6, 2028.

• Lookonchain data shows that US-listed 10 Bitcoin Spot ETFs recorded a net outflow of 4,255 BTC worth $254.17 million on Monday. Monitoring these ETFs’ net inflow data is crucial for understanding market dynamics and investor sentiment. The combined Bitcoin reserves held by the 10 US spot Bitcoin ETFs stand at $54.19 billion.

• According to Coinglass’s data, BTC’s long-to-short ratio is 0.928. This ratio reflects bearish sentiment in the market, as a number below one suggests more traders anticipate the price of the asset to decline, bolstering Bitcoin’s bearish outlook.

Bitcoin long-to-short ratio chart

Technical analysis: BTC shows signs of weakness

Bitcoin price has consistently faced resistance at the 61.8% Fibonacci retracement level of $62,066, drawn from the swing high of $70,079 from July 29 to the low of $49,101 from August 5. As of Tuesday, it is trading down by 0.5% at $59,039.

If the $62,066 level continues to act as resistance, in conjunction with the broken trendline and the 100-day Exponential Moving Average at around $62,659, selling pressure could increase.

A failure to break above $62,066 might result in an almost 20% decline, potentially testing the daily support level of $49,917.

On the daily chart, the Relative Strength Index (RSI) and Awesome Oscillator (AO) trade below their neutral levels of 50 and zero, respectively, suggesting a strong bearish trend.

BTC/USDT daily chart

However, if Bitcoin closes above the August 2 high of $65,596, it would set a higher high on the daily chart, possibly leading to a 6% price increase and testing the weekly resistance at $69,648.