Will Bitcoin Finally Benefit Bulls as Futures Flow Favour Bears?

Bitcoin shows bearish momentum, with futures flows favoring sellers and technical indicators suggesting potential volatility drop.

Bitcoin’s current price movement, which stands at $91,524, reflects a 0.3% increase in the past 24 hours. However, the recent price action has been volatile, trading around its seven-month lows.

This follows a decline that saw BTC briefly dip below $90,000, its faintest price since April. Despite a brief recovery towards the $94,000 level, Bitcoin struggled to maintain its gains as market sentiment remained cautious.

Over the past 7 days, Bitcoin has decreased by 11.3%, and in the last 14 days, it has fallen by 10.1%, indicating a generally bearish trend.

Bitcoin Technical Analysis

On the technical end, Bitcoin is currently showing strong bearish signals, as indicated by several key technical indicators, although things might reverse in the near future. The price is trading just above the lower Bollinger Band at $89,474.81, which typically suggests an oversold condition.

Bitcoin

Prices near the lower band often point to further declines unless the market finds support and reverses course. On the positive side, the Bollinger Bands have expanded in the latest trading sessions, indicating higher volatility, but this may also signal an impending contraction as volatility drops.

This could also possibly push Bitcoin towards the middle band, acting as immediate resistance at $101,241, hence benefiting the bulls. Further resistance also exists around the upper Bollinger band at $113,008.

Meanwhile, the Moving Average Convergence Divergence further confirms the bearish sentiment. The MACD line is below the signal line, which is a clear indication of downward momentum. Additionally, the negative histogram confirms that selling pressure remains strong, and the overall trend is still heavily skewed toward the downside.

A potential reversal could occur if the price recovers back towards the middle Bollinger Band, and the MACD shows signs of bullish crossover.

Bitcoin Futures Flow Data

Elsewhere, the futures flow data extracted from Coinglass reveals selling pressure in Bitcoin trading, with a clear bearish sentiment across multiple time frames. Over the 4-hour and 8-hour intervals, the net inflows are slightly negative or show marginal positivity, reflecting a continued trend of traders exiting positions.

The 4-hour net inflow is negative (-$3.52M), while the 8-hour also shows a negative net inflow of -$392.51M.

Looking at the longer-term data, such as the 12-hour and 24-hour flows, the negative trend intensifies. The 12-hour netflow shows a sharp outflow, with a dramatic -929.39% change, highlighting increasing selling pressure.

The 24-hour data also reflects a net outflow of -$678.38M, suggesting that overall market sentiment remains bearish, as investors find safety amid the market uncertainty. This trend suggests that the downward pressure on Bitcoin’s price may persist in the near term.

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