U.Today – is showing potential for a significant recovery, driven by recent ETF activities and price stabilization. According to SoSoValue, the Hong Kong Bitcoin Spot ETF recorded a net redemption of 519.5 Bitcoins on May 13, bringing the total number of Bitcoins held to 3,560. This ETF has seen net redemptions for three consecutive days, with a single-day turnover of $4.25 million and total net assets of $219 million. Meanwhile, the HK ETH Spot ETF has 13,350 ETH.
This refund trend is not unique to Hong Kong; Bitcoin ETFs in Western markets are also experiencing similar patterns. While the initial reaction to net redemptions may appear bearish, these capital outflows may actually be bullish indicators as they often lag market sentiment. The current lack of inflows suggests that retail investors are regaining control, which may lead to a Bitcoin price recovery.
Bitcoin price chart analysis supports this optimistic outlook. The chart shows Bitcoin consolidating around a crucial support level. The 50-day moving average is above the 200-day moving average, indicating a possible bullish trend. Furthermore, the RSI is around 50, suggesting that Bitcoin is neither overbought nor oversold, leaving room for an upward move.
Volume analysis reveals increased buying activity during the recent declines, indicating strong support from buyers at lower price levels. This accumulation phase usually precedes a price rally, as investors take advantage of lower prices to build their positions.
The stabilization of the market and the lack of significant inflows into ETFs mean that retail investors could be preparing for a price recovery. Historically, when retail investors regain control, a more sustained and organic price increase often occurs.
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This article was originally published on U.Today.
