Bitcoin Slips Below $100K as Bulls and Bears Clash

Bitcoin (BTC) has been trading below the psychologically critical $100,000 level for the past few days, signaling a lack of aggressive buying at lower levels. CryptoQuant contributor J. A. Maartunn said in a Quicktake blog post that Bitcoin "flowing out of derivative exchanges and into spot exchanges" suggests the start of a bearish phase. The large outflows from cryptocurrency exchange-traded products (ETPs) last week suggest that the market participants are turning cautious in the near term. According to a CoinShares report, Bitcoin ETPs witnessed $430 million in outflows in the previous trading week, possibly triggered by macroeconomic concerns and the hawkish remarks by the US Federal Reserve Chair Jerome Powell.

However, not everyone is bearish on Bitcoin. Bitwise CEO Hunter Horsley said in a post on X that he has "never been more optimistic" about Bitcoin as it is "going to take into the mainstream this year." Another bullish voice is that of Bitwise head of alpha strategies Jeff Park who called Bitcoin a "generational opportunity."

The S&P 500 Index (SPX) has been trading between the 50-day simple moving average (6,007) and the overhead resistance of 6,128. The gradually upsloping 20-day exponential moving average (6,047) and the relative strength index (RSI) in the positive territory indicate the path of least resistance is to the upside. If buyers maintain the price above 6,128, the index could start the next leg of the uptrend to 6,403. This optimistic view will be negated in the near term on a break and close below the 50-day SMA. That could sink the price to 5,923 and subsequently to 5,853.

The US Dollar Index (DXY) has been trading below the 106.96 support level, indicating the start of a corrective phase. The downsloping 20-day EMA and the RSI in the negative zone suggest that bears have an edge. If the price maintains below 106.96, the index could decline to the solid support at 105.42. The first sign of strength will be a break and close above the overhead resistance at 10