In the somber chronicles of Bitcoin’s (BTC) daily chart, a dismal three-blind mice pattern has emerged, a harbinger of despair over the past three days. The once-stalwart BTC has now been cast out from its long-established sanctuary, a range that once cradled it between $110,000 and $90,000, now a distant memory. 🐭🐭🐭
In the fleeting hours of the last day, Bitcoin dared to test the fair value gap, yet it floundered, struggling to muster any semblance of bullish momentum from the depths of the $82,000 abyss.
Spot Bitcoin ETFs Bleed $3.4 Billion in February
Between the fateful days of February 24 and 27, Bitcoin suffered a grievous drawdown of 12.48%. This calamity was accompanied by a relentless tide of spot BTC ETF outflows. Data from SoSoValue, a beacon of hope in this dark narrative, revealed that the collective spot ETFs market bled a staggering $2.4 billion this week alone, with February 25 marking the day of BTC’s largest ETF outflow of $1.13 billion since its inception. 💔
In total, the spot BTC ETF market has witnessed a catastrophic outflow of $3.4 billion in February. The demand for these ETFs has dwindled, much like the hopes of the weary traders during this week’s correction. Crypto analyst Adam, a voice of reason amidst the chaos, suggested that historical data often points to price reversals whenever large ETF inflows or outflows occur.
Adam noted that in 14 instances of significant inflows or outflows, Bitcoin’s price has aligned with the direction of those flows only once. This rare alignment occurred on November 7, a day marked by Trump’s victory, when a price surge and substantial inflows were observed. Ah, the irony of politics and markets! 🎭
Adam lamented,
“Generally, people see a big red number and start panic selling, or vice versa, which ends up sending the market in the opposite direction.”
In a twist of fate, the trader speculated that, depending on other confluent factors, “some relief rally” might be lurking just around the corner. Yet, Zaheer, an anonymous market analyst, suggested that the current drop in spot prices and ETF net flows could be attributed to the CME futures basis falling below 5%.
The analyst elaborated that most market participants hastily unwound their positions once the risk-free rate range was breached. The gradual decline in CME futures open interest painted a grim picture of low investor confidence, further evidenced by the meager futures premiums.
Bitcoin Fear & Greed Index Conveys Investor Sentiment
CryptoMoon reported that the Crypto Fear & Greed Index has plummeted to its lowest level since 2022, projecting a score of 10, plunging into the depths of “extreme fear.” According to Ben Simpson, the founder of Collective Shift, these dire conditions could present a golden buying opportunity, as the simple strategy of buying into extreme fear and selling into greed has proven to be a profitable endeavor. 🤑
However, Axel Adler Jr., an on-chain market researcher, pointed out that the Bitcoin Fear & Greed Index’s 30-day moving average has yet to dip below the 50th percentile.
Adler explained that a drop below this threshold has historically signaled Bitcoin price reversals and upward trends, yet the current index remains
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2025-02-27 22:10