Home News “Bitcoin may have already established local support”: Bitfinex

“Bitcoin may have already established local support”: Bitfinex

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According to cryptoasset exchange Bitfinex, Bitcoin (BTC)’s recovery from $60,000 (USD) represents a positive sign for the market. “This shows that we are close to establishing a local fund and, in fact, we have already done so,” he said in a market report.

perfect, Currency recovered today, March 25, 70,000 US dollars After falling 17.5% from its all-time high (ATH) recorded twelve days ago. As seen below, the fall was from USD 73,700 to USD 60,000, with this level serving as its local support at the moment.

Bitcoin price in the last two weeks. waterfall: trading view,

It should be noted that local bottom is considered to be the lowest price that an asset touches during a period of decline. In this sense, it may be that from there it will be pushed to new highs or, if it falls again, it will not be below that support.

“We believe we are close to establishing a market cycle bottom – if we have not already done so – because, from the bear market bottom in November 2022 with BTC at $15,500, After that there will be no significant drop from the local maximum. Never more than 23%”, Bitfinex explains,

It is worth clarifying These comments were published this morning, March 25, 2024, ahead of the surge that took Bitcoin above $70,000,

In tune, Bitcoin financial services company NDYG pointed out that such setbacks do not mean the bull market is over. Therefore, he suggests that investors should be prepared for this type of decline, as reported by CryptoNoticias.

Bitfinex says Bitcoin ETF outflows are no cause for concern

Regarding capital outflows from Bitcoin exchange-traded funds (ETFs) that caused last week’s decline, Bitfinex said it was “not a cause for concern.” This is because they all came from Grayscale (GBTC), while others are accumulating more and more inflows to compensate for their negative inflows.

For the exchange, GBTC exit is on one side, as investors shun the high fees demanded by this ETF in relation to others. Meanwhile on the other hand he says that are for profitEspecially because many of its holders are long-term investors from bear markets.

“We would only be concerned if negative flows into GBTC started to be reflected in new ETFs like BlackRock’s IBIT and Fidelity’s FBTC,” he warned. Therefore, it suggests closely monitoring the behavior of these two devices, which are most in demand in this field.

GBTC, launched in the United States two months ago, is the only one of the 10 Bitcoin ETFs that previously operated off-exchange. Since then, it has been maintained with constant outputs, while the rest have inputs, as shown below.

Inflows and outflows of Bitcoin ETFs in the United States since launch. Source: Bitfinex.

This means that as long as these instruments once again have greater inflows than GBTC outflows, they will be one of many factors pushing the price of Bitcoin higher.

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