Bitcoin Lacks Support Below $63.5K; the Chart Shows as BTC Price Halts Gains

The Bitcoin price traded at $63,567 as of 3:30 EST, up 0.3% over the last 24 hours.

BTC traded gains for consolidation at the April 16 Wall Street open as the price action of the pioneer cryptocurrency gave bulls mixed signals.

The market set-up shows that the path with the least resistance from the Bitcoin price is on the downside. Data from TradingView and CoinMarketCap revealed the fading upside, with the BTC/USD pair sinking up to 12% over the last seven days.

Now oscillating around the key $69,000 from the 2021 all-time high, the big crypto appeared uncertain about its next move after the slight gains on April 16.

Market dynamics reveal arguments for a continued correction over the next few days.

Data from wealth management firm Farside Investors put outflows from the Grayscale Bitcoin Trust (GBTC) at %79.4 million and the total to all the spot Bitcoin ETFs at $58 million. This is considerably a worse performance compared to early March.

Most of the spot Bitcoin ETF issuers have seen zero inflows over the last few days, which, according to Bloomberg ETF analyst James Seyfartt, is "very normal."

"Minor mismatches will see the market makers handle trading of shares just like they would a stock. But it needs to be lopsided – more than a creation unit in either direction for market makers to tap the APs/underlying market"

At the same time, a lack of robust support on the downside kept the odds of a return to lower support levels in play. Data from market intelligence firm IntoTheBlock revealed that BTC's price sits on relatively weak support below $63,500 compared to the resistance it faces on the upside.

Bitcoin IOMAP chart. Source: IntoTheBlock

This suggests that the path with the least resistance is lower.

Can the BTC price hold above $63,000?

At the time of publication, Bitcoin bulls were fighting to defend the demand zone between $63,500 and $63,000.

A daily candlestick close below this level would see the price drop from the current level toward the local low at $60,771 and later to the $60,000 psychological level.

This is where the price could stay for a few days before taking any directional bias.

TradingView Chart: BTC/USD

The downward-facing RSI supported this negative outlook. The price strength at 42 suggested that market conditions still favored the downside.

On the upside, the price was still trading within the wide trading range established since hitting the all-time high at $73,835 on March 14. The bulls will now try to push the price toward $65,000 and later higher to confront resistance from the psychological level at $70,000.

Above that, the next logical move would be to return to the ATH at $73,835, bringing the total gains to 16%.