Bitcoin, Record-Breaking Funds Poured In, But Why Isn't It Rising?...Stalled by a 'Sell-Off Bomb'

▲ Bitcoin (BTC)

Bitcoin (BTC) recorded its largest monthly fund inflow ever. However, attempts to break past $80,000 ultimately failed. Profit-taking sell-offs poured in, halting the price rally.

On April 29 (local time), U.Today, a virtual asset specialized media outlet, reported that a record amount of funds had flowed into the Bitcoin market. This month, inflows through Bitcoin spot ETFs exceeded $2.5 billion, marking an all-time high for a single month. Despite the massive influx of funds, Bitcoin's price slipped at the threshold of $80,000. This is interpreted as a result of accumulated fatigue from a short-term surge.

Experts are focusing on the increase in supply on exchanges. U.Today reported that whales are releasing their holdings to secure profits. The psychological resistance level of $80,000 acted as a strong selling wall. The large-scale fund inflow was unable to fully offset the selling pressure. Currently, Bitcoin is testing support around the $76,000 mark.

The market sentiment index remains in the 'greed' phase. However, upward momentum has noticeably decreased. There are also signs of funds diversifying into altcoins as Bitcoin dominance declines. Investors are taking a wait-and-see approach rather than making additional purchases. Market caution has reached its peak ahead of statements from the Federal Reserve Chair.

Technical indicators suggest the possibility of a correction. The Relative Strength Index (RSI) is moving down from the overbought zone. If the $74,000 support level breaks, further decline is inevitable. Some analysts suggest that the positive news of massive fund inflows has already been priced in. Bitcoin is expected to trade within a narrow range until this weekend.

Bitcoin is battling between the inflow of massive capital and strong resistance. While liquidity provision is positive, it is insufficient to overcome the selling pressure. The market is awaiting a new catalyst. High volatility is likely to continue for the time being.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*