Bitcoin: Why Isn't It Rising Despite Record Inflows? ...Stalled by a Selling 'Bomb'

▲ Bitcoin (BTC)

Bitcoin (BTC) recorded the largest monthly capital inflow ever. However, the attempt to break through $80,000 ultimately failed. Profit-taking selling poured out, halting the price rally.

On April 29 (local time), U.Today, a virtual asset media outlet, reported that a record amount of capital had flowed into the Bitcoin market. This month, inflows through Bitcoin spot ETFs exceeded $2.5 billion, marking the largest monthly figure ever. Despite the massive capital inflow, Bitcoin's price slipped at the threshold of $80,000. This is interpreted as a result of accumulated fatigue from a short-term surge.

Experts are focusing on the increase in supply on exchanges. U.Today reported that whales are releasing their holdings to secure profits. The psychological resistance level of $80,000 acted as a strong selling wall. In essence, the large-scale capital inflow could not completely offset the selling pressure. Currently, Bitcoin is testing support at the $76,000 level.

The market sentiment index remains in the 'greed' phase. However, the upward momentum has noticeably decreased. There is also a trend of funds diversifying into altcoins as Bitcoin dominance declines. Investors are adopting a wait-and-see approach rather than making additional purchases. Market caution has reached its peak ahead of statements from the Federal Reserve Chairman.

Technical indicators suggest the possibility of a correction. The Relative Strength Index (RSI) is moving down from the overbought zone. If the $74,000 support level breaks, further decline is inevitable. There is also an analysis that the positive news of large-scale capital inflow has already been priced in. Bitcoin is expected to trade within a narrow range until this weekend.

Bitcoin is battling between massive capital inflows and strong resistance. While liquidity supply is positive, it's insufficient to overcome selling pressure. The market is awaiting a new catalyst. High volatility is likely to continue for the time being.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*