Bitcoin (CRYPTO: BTC) jumped above $64,250 on Saturday, helped by falling crude oil prices and dip buying among investors. It has jumped by close to 10% from its lowest point this month. Still, the coin is facing a $4.4 billion headwind as the risky bearish pennant pattern forms.
Bitcoin Price is Facing a $4.4 Billion Tailwind as US Investors Dump
Data shows that American investors continued dumping their Bitcoin ETF holdings this week. These funds suffered a $315 million outflow, with the iShares Bitcoin ETF (NASDAQ:IBIT) and Fidelity's FBTC leading the charge.
This week's outflows brought the monthly loss to over $2.4 billion. Added to the $2.4 billion they lost in May, these funds have lost 44.4 billion in the last two months, much higher than the $3.2 billion they added in March and April this year.
The ongoing ETF outflows is likely because American investors have been rotating from crypto to the booming stock market. Stock ETFs have added over $1 trillion in assets this year, with the Vanguard S&P 500 ETF (NYSE:VOO) being the top beneficiary. It crossed the $1 trillion asset mark earlier this month.
Investors have likely moved to the stock market because of its stronger performance compared to crypto in the past two years. Also, investors have rotated from the "boring" Bitcoin to the booming AI and space ETFs ahead of key IPOs.
Meanwhile, the Coinbase Bitcoin Premium Index has remained in the red since April this year. This is an important metric that measures Bitcoin's price on Coinbase compared to Binance, which is the most popular exchange globally. In most cases, the premium is usually green when there is an elevated demand from US investors.
Coinbase Bitcoin Premium Index | Source: CoinGlass
Bitcoin's futures open interest has been under pressure, moving from over $60 billion in May to $46 billion today. Open interest looks at the amount of unfilled orders in the futures market.
BTC Has Formed a Bearish Pennant Pattern
Bitcoin price chart | Source: TradingView
There is a risk that the ongoing Bitcoin rebound is a dead-cat bounce, a situation where an asset in a freefall rebounds briefly and then resumes the downtrend. That's because the coin has slowly formed a bearish pennant pattern, which is made up of a vertical line and a symmetrical triangle.
Bitcoin is also yet to move above the 50-day or the 100-day moving average, a sign that bears remain in control. Therefore, there is a likelihood that the coin will resume the downtrend. A move below the year-to-date low of $59,200 will point to more downside.
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