Bitcoin (BTC) News Today: Risk-On Sentiment Drives BTC Toward $60,000

BTC Revisits $57,000

On Tuesday, August 6, BTC gained 3.50%. Partially reversing a 6.91% slide from Monday, August 5, BTC closed at $56,173.

Market conditions improved on Tuesday as easing fears of a US recession lured dip buyers. USD/JPY trends also fueled demand for riskier assets after the Yen carry trade unwind affected the financial markets. The USD/JPY ended a five-day losing streak, gaining 0.11% to close at 144.291. The Nasdaq Composite Index advanced by 1.03%.

Despite the gains, BTC could not reverse Monday’s losses because of US BTC-spot ETF market outflows.

US BTC-Spot ETF Market Faces Three-Day Outflow Streak

On Tuesday, the US BTC-spot ETF market saw total net outflows for the third consecutive session.

According to Farside Investors:

• Grayscale Bitcoin Trust (GBTC) had net outflows of $32.2 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) extended its net outflow streak to seven sessions, with net outflows of $64.5 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $28.9 million.
• Franklin Bitcoin ETF (EZBC) saw net outflows of $23.0 million.

Excluding flow data for iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the US BTC-spot ETF market saw total net outflows of $148.6 million, down from $168.4 million in the previous session.

US recession fears and potential Yen carry trend volatility likely impacted US BTC-spot market flow.

Expert Views

BCA Research Chief Global Strategist and Director of Research Peter Berezin commented on the Fed rate path and the Yen carry trade, stating,

“If it is the unwinding of the yen carry trade driving this, emergency Fed cuts could make things worse by narrowing the interest rate differential between the US and Japan.”

Investors have raised bets on multiple 2024 Fed rate cuts following the US Jobs Report.

Wall Street Journal Chief Economics Correspondent Nick Timiraos shared views from Goldman Sachs, saying,

“Goldman now expects rate cuts at each of the Fed meeting this year, adding a cut to November.”

Investors should remain alert amidst BTC-spot ETF outflow trends and sentiment toward the Bank of Japan and the Fed’s rate paths. Stay updated with our latest news and analysis to manage exposures to BTC and the broader crypto market.

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day and the 200-day EMAs, confirming the bearish price trends.

A BTC breakout from $57,500 could give the bulls a run at the 200-day EMA and the $60,365 resistance level. A break above the $60,365 resistance level could signal a move toward the 50-day EMA and the $64,000 resistance level.

Market risk sentiment, central bank commentary, and BTC-spot ETF flow trends require consideration.

On the other hand, a break below the $52,884 support level could bring the $47,860 support level into play.

With a 35.24 14-Daily RSI reading, BTC could fall below the $52,884 support level before entering oversold territory.

Ethereum Analysis

ETH remained well below the 50-day and 200-day EMAs, affirming bearish price signals.

An ETH move above the $2,664 resistance level could bring the $3,033 resistance level into play.

US ETH-spot ETF market flow trends also require consideration.

Conversely, an ETH break below the $2,403 support level could bring the $2,124 support level into play.

The 14-period Daily RSI reading, 24.75, shows ETH sitting in oversold territory. Buyer demand may increase at the $2,403 support level.