Bitcoin Tops $100K Despite ETF Outflows, Analysts Warn of Rising Volatility, Here’s What’s Next for Investors
Bitcoin‘s (CRYPTO: BTC) price hit the $100,000 mark in the early hours of Saturday, despite experiencing its worst performance since 2018 with a 3.7% decline as October concluded.
This milestone comes amidst an increase in volatility and outflows from Bitcoin ETFs.
The Bitcoin has been grappling with sustained selling pressure from US-based exchanges and spot Bitcoin ETFs, even in the face of a supportive interest rate cut from the US Federal Reserve.
According to the data from Coinmarketcap, US spot Bitcoin ETFs witnessed outflows of $488 million and $191 million on Thursday and Friday respectively, indicating a trend of capital moving away from traditional financial products associated with Bitcoin.
$BTC Held $107K again and moved back to the mid range. It’s just up one day, down the other at this point.
Range is ranging. Chop is chopping.
We remain patient for $107K or $116K to break to see some momentum back into this market and for the range to end. pic.twitter.com/u8PpwzaDLn
Crypto analyst Matthew Hyland has said that the monthly Bollinger Bands have reached the most extreme levels in Bitcoin’s entire history.
Also Read: Wall Street Braces For $6.6 Trillion Fed Shift Amid Bitcoin Price Surge
#BTC Monthly closes
Monthly Bollinger Bands have reached the most extreme levels in Bitcoins entire history: pic.twitter.com/1RnvFpLD2H
Bitcoin’s price is currently fluctuating within a defined range, with traders anticipating a breakout above $116,000 or below $107,000. The tightening of Bollinger Bands, a technical volatility indicator, implies that a significant move could be imminent.
Despite an anticipated interest rate cut by the US Federal Reserve, the market “shrugged off a macro tailwind” and turned cautious, as per Glassnode. Investor sentiment remains uncertain, with crypto entrepreneur Ted Pillows cautioning that a weekly close below $100,000 would confirm a downtrend.
$BTC Options Weekly
The Fed delivered the expected rate cut, but the hawkish tone for December has cooled optimism. The initial rally faded as traders moved back into cautious mode, a shift clearly reflected in BTC’s options market.
Here’s what the market is signaling now. 👇 pic.twitter.com/mN3u4wL7DY
Historically, November has been a strong month for Bitcoin, with an average gain of over 42% since 2013.
