Why is Bitcoin Price Down ? Grayscale ETF Spotted Moving another $200M BTC

Bitcoin (BTC) price fell as low as $68,234 on April 9, down 5% from the 25-day peak of $72,753 recorded barely 24 hours earlier. On-chain data shows how long-term investors booking profits ahead of the forthcoming halving may have triggered the market wide volatility.

Will rising demand from Bitcoin ETFs be sufficient to keep prices above $70,000 or is BTC at risk of a further correction towards $65,000.

Why is Bitcoin Price Down Today?

Bitcoin price fell 5% within the daily time-frame on April 9, largely due to another wave of 2,990 BTC outflow from Grayscale’s GBTC ETF as well as long-term investors offloading over 11,900 BTC, likely to lock-in profits ahead of the Bitcoin halving.

Firstly, as seen in the chart below, all 11 approved Bitcoin ETFs recorded a cumulative outflow of 2,400 BTC, with Grayscale (GBTC) bleeding over 2,990 BTC according to official fillings recorded at close of trading on April 9.

The price correction on April 9, came amid a period of strong demand from from the likes of Blackrock’s IBIT and Fidelity’s FBTC ETF which became the second fund sponsor to reach the milestone of 150,000 BTC holdings.

Valued at the current prices, the 2,990 BTC outflows from GBTC effectively unloaded over $206 million within the daily timeframe. Evidently, the supply surge and the negative sentiment surrounding the sell-off, combined to put some downward pressure on Bitcoin prices on April 9.

Bitcoin (BTC) Price Forecast: Losing $68,400 Support Could Trigger more Downside

After 5% dip within the daily timeframe, Bitcoin price has found support just  above the $69,000 level.

However, the Bollinger band indicators show that BTC losing the $68,400 support territory, could tilt the momentum in the bears’ favor, likely triggering further price downside.

But in the event of an early market recovery, the bulls could regain control if BTC price can scale the looming sell-wall at the $72,900 territory, as depicted by the upper-limit Bollinger band indicator.