Analyst said that if Bitcoin slips below $115k, it could trigger a massive selloff.
The broader crypto market continued to stay in the red so far today, with BTC price slipping below the $116,000 mark.
Notably, the slump comes despite strong institutional bets into BTC, as evidenced by the recent fund flow into the US Spot Bitcoin ETF.
This suggests that despite soaring institutional interest, the retail traders might be staying on the sidelines.
Besides, it appears that the latest 25 bps Fed rate cut infused boost could not sustain for long, as evidenced by the volatile scenario in the market.
Meanwhile, this has left many wondering what may lie ahead for the broader market and eagerly waiting for the next potential move for the price of Bitcoin.
With the continuing fund flow into the US Spot Bitcoin ETF, many are anticipating a strong rally for the flagship crypto soon.
Amid this, top experts highlighted key price levels to watch for Bitcoin price in the near future.
The US Spot Bitcoin ETF recorded an influx of $222.6 million on Friday, September 19, thanks to BlackRock IBIT’s $246.1 million flow.
However, GrayScale’s GBTC recorded an outflow of 23.5 million, as per data from Farside Investors.
For the week, the total inflows came in at $886 million. However, on September 17, the Bitcoin ETF inflows streak of seven days came to an end with $51.3 million outflow.
Although the mid-week outflow has sparked concerns, the investment instrument quickly reversed its track on September 18 with $163 million inflow.
This indicates that institutions might have taken a pause amid Fed rate cut and Jerome Powell speech, but continue to bet on the flagship crypto.
Meanwhile, many market pundits see this continuing fund flow as a positive development in the market.
Besides, they noted that if the institutional interest remains intact, it could possibly help BTC price to hit a new high in the coming days.
The Bitcoin ETF inflow and the latest Fed rate cut appear to have failed to lift the market sentiment.
It seems that many investors have booked profits, which might have caused the recent slump in the broader crypto market.
Amid this, Bitcoin price fell nearly 1% in the last 24 hours and traded at $115,826 while writing.
Its trading volume also dipped around 20% to $34 billion, indicating lesser activity in the market.
Besides, the derivatives data also reflect the waning risk-bet appetite of market participants.
According to CoinGlass data, Bitcoin Futures Open Interest fell around 1% in the last 2 hours to $84.7 billion.
CME Exchange recorded the highest dip of 3.02%, while OI on Binance was down around 0.75% in the same time frame.
So, what lies ahead for BTC price? Here, we explore some of the key levels to watch for the flagship crypto, which analysts have flagged as major support and resistance levels for the potential next move ahead.
The latest dip in BTC price could also be due to the $4.3 billion in Bitcoin and Ethereum options expiry recorded yesterday.
Such a massive options expiry often impacts the market sentiment, while hindering the momentum of the broader digital assets sector.
Meanwhile, this also suggests why strong Bitcoin ETF inflows struggled to lift the market sentiment.
Amid this, renowned market expert Ali Martinez highlighted $115,440 as a key support for Bitcoin price.
He said that if BTC price manages to hold this support, it can continue its run to $137,300, sparking market optimism.
On the flip side, losing the key level could trigger a massive selloff, potentially dragging down the price of Bitcoin to $93,600.
Echoing a similar sentiment, analyst Michael van de Poppe said that the key support lies at $114,755.
Losing this area could trigger a slump to $103k, while breaching the $116.8k resistance could help in a BTC rally to $123.28k.
Poppe stated:
“It doesn’t look too great for #Bitcoin at this point.”
Considering all these aspects, it seems that if retail investors can help maintain the $115k support, it might result in a quick rebound.
Besides, sustained Bitcoin ETF inflows could also trigger a BTC price rally to a new all-time high.
However, in case of a bearish scenario, the investors should also brace for a major correction ahead.
Despite that, many analysts said that such a correction would offer a “buy-the-dip” opportunity to many, indicating their long-term optimistic outlook on the asset.
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