Key Points
- Bitcoin (BTC) is testing its range lows as it struggles to maintain its previous momentum.
- The crypto exchange-traded fund (ETF) sector is experiencing upheaval, with mixed outlooks.
Bitcoin's price is experiencing a downturn, with a test of range lows on the horizon. The cryptocurrency's momentum is sagging towards $62,000, following a previous rebound beyond $65,500.
Bitcoin's Struggle to Maintain Momentum
The 5% retracement left Bitcoin firmly within a range that has been in place since before the weekend. The daily close, around $62,300, puts Bitcoin at risk of losing more of its recent gains.
A daily close below $62,100 or prolonged inactivity could trigger a stop-loss, warns J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant. Michaël van de Poppe, founder and CEO of trading firm MNTrading, expressed frustration at the lack of direction since Bitcoin's block subsidy halving in mid-April.
Optimism Amid Downturn
Despite the downturn, some traders remain optimistic. Moustache, a fellow trader, argues that the current moves should result in more sustained upside, as seen in previous post-halving setups.
The crypto exchange-traded fund (ETF) sector is also experiencing changes. Grayscale, one of the operators of the new spot Bitcoin ETFs in the United States, has pulled plans for a futures ETF product based on Ethereum (ETH).
The U.S. Bitcoin ETFs experienced another day of net outflows on May 7, contrasting with the previous two days' inflows, which exceeded $500 million. Outflows of $15.7 million were confirmed by sources, including UK-based investment firm Farside. Concurrently, investment firm Susquehanna disclosed an ETF portfolio worth $1.3 billion.
