Bitcoin (BTC) hit two-week lows around the April 30 Wall Street open after new spot price exchange-traded funds (ETFs) disappointed.
BTC price suddenly retargets $60,000
Data from Cointelegraph Markets Pro and TradingView tracked a precipitous drop on BTC/USD after the Asia trading session, with the pair losing $61,000 support.
Liquidations quickly mounted across crypto, totaling $275 million over 24 hours, per data from monitoring resource CoinGlass.
The already cautious mood turned firmly bearish as it emerged that the first day’s trading volumes for Hong Kong’s new Bitcoin ETFs had fallen considerably below expectations.
The new products managed $12.4 million — still impressive for the size of the local market, per Bloomberg Intelligence analyst, Eric Balchunas.
In a reaction on X (formerly Twitter), Balchunas gave a distinctly positive impression of the first day’s performance.
“East vs West: The US did $740m in assets and $4.6b in trading. These are far below that but if you adjust for the size of their mkt it is dif story: equiv of $25b+ and $1.6b, respectively,” one post read.
“For context, China AMC's bitcoin ETF is already among Top 20% biggest in that mkt after one day.”
Balchunas additionally noted that the timing of the Hong Kong launch would contribute to overall spot ETF flows at a time when U.S. volumes had turned “slightly negative.”
The latest data from sources including United Kingdom-based investment firm Farside confirmed four straight days of net outflows for the U.S. ETFs through April 29.
Concern over Bitcoin futures shorting
Considering where current BTC price weakness may reverse, market participants eyed both $60,000 and the ground immediately below.
Related: Worst month since 2022 bear market? 5 things to know in Bitcoin this week
“The 50-day EMA stands as potential support, while the $60k level seems like robust bottom for the current consolidation range, extending up to $74k,” Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, argued in part of an X post on the day.
“With the market favoring a 'buy on the dip' approach, bullish sentiment persists. However, a breach of the $60k support may lead to further stability at the $52k level, historically attracting buyers and reinforcing the uptrend.”
Allemann and Happel referred to the 50-day exponential moving average (EMA), while popular trader Wolf drew attention to the 21-day equivalent. The two trendlines both stood around $64,500 at the time of writing, with the daily candle threatening to leave them far behind.
Fellow trader Axel Adler added that Bitcoin futures were being shorted, casting doubt on nearby support.
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