Benzinga - After a month-long rally, Bitcoin (CRYPTO: BTC) prices are stalling and even under some sell pressure. Traders are debating in which direction Bitcoin will break out from its range.
What Happened: Bitcoin prices are down 1.5% on the day, currently trading at $51,100.
The weekly loss of 1.7% contrasts with previous week's 10% gain, with Bitcoin hovering just around the $1 trillion market cap mark.
According to JPMorgan research, as reported by CoinDesk, the Bitcoin ETF price-to-flow correlation stands at 0.60 as of Feb. 21, 2024, compared to 0.78 on Feb. 7 and 0.84 on Jan. 31.
A figure above 0.70 is considered "highly correlated," while just below is deemed "moderately correlated."
Recent data showed inflows into the top 10 Bitcoin ETFs hit a two-week low on Feb. 22, with five funds experiencing no net movement. This group attracted only about a net 500 Bitcoin, equivalent to $25.5 million, the lowest since Feb. 6.
Additionally, Grayscale’s Bitcoin Trust saw outflows of 2,652 Bitcoin removed from its fund on Feb. 22.
Also Read: Bitcoin Hits All-Time High In Japanese Yen: These Currencies Are Next In Line
Why It Matters: Traders are undecided if the crypto king will hit $55,000 or $45,000 first:
Technical chart analyst Ali Martinez tweeted: “$51,500 has now become one of the most important support zones for Bitcoin." He saw "a good chance it will advance toward $57,000” above that level.
Heavily-followed analysts Michaël van de Poppe and Jelle anticipated a slight pullback or consolidation phase before Bitcoin makes new all-time highs.
#Bitcoin having a slight pullback before continuation upwards. pic.twitter.com/6TJcnNNrizMeanwhile, former President Donald Trump shifted his stance on Bitcoin, expressing readiness to coexist with it.— Michaël van de Poppe (@CryptoMichNL) February 23, 2024
The European Central Bank, however, criticized the SEC’s ETF approval as the "naked emperor's new clothes."
Investors are cautiously observing Bitcoin's direction from this level, with the upcoming halving event remaining a significant catalyst contributing to the crypto king's potential bull run.
Read Next: Retail Investors Dip Their Toes Back Into Crypto, But Bull Run Excitement Wanes (CORRECTED)
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