Bitcoin Price Plunges Below $60,000 Amid Record ETF Outflows

The price of Bitcoin has retreated below $60,000 as American investors sell their positions. According to data from SoSoValue, spot Bitcoin ETFs shed over $1.79 billion last week, a record amount. The iShares Bitcoin Trust (IBIT) lost the most assets, with its net worth decreasing to $44 billion.

The outflows are attributed to investors moving to the stock market, with the Vanguard S&P 500 Index (VOO) surpassing $1 trillion in assets and the DRAM ETF accumulating over $24 billion. A similar trend is observed in South Korea, Taiwan, and Japan, where the AI boom is driving investors to the stock market.

However, there are early signs of a potential bounce back for Bitcoin. Consumer inflation has softened due to falling crude oil prices, with Brent and WTI dropping to $72 and $69 respectively. The Crypto Fear and Greed Index has also dropped to an extreme fear zone of 17, which often precedes a price increase.

Technically, Bitcoin may have formed a double-bottom pattern at $59,000 and a neckline at $67,280. This bullish reversal pattern suggests that the coin may be on the cusp of a breakout. Nevertheless, an inverted cup-and-handle pattern also exists, which could lead to further downside if the price falls below $58,000.