- •Bitcoin trades below short-term cost basis near $115K resistance zone.
- •Spot Bitcoin ETFs see over $320M in outflows amid cautious sentiment.
- •Whale traders increase short positions totaling 4,394 BTC this week.
Bitcoin is trading around $111,200, down by 3% in the last 24 hours. The price drop follows renewed tensions between the United States and China, which have raised market uncertainty.
According to CryptoQuant, Bitcoin is now below its short-term cost basis of $115,000. The firm stated, “Reclaiming this level would mark renewed trader confidence and signal a possible shift toward bullish momentum.”
Spot Bitcoin ETFs recorded outflows totaling more than $320 million on Monday. This move suggests that investors are becoming more cautious as market volatility rises. The outflows mark one of the largest since early September, reflecting a decline in short-term market confidence.
Market Focus on Powell’s Speech and Interest Rate Outlook
Traders are now watching for Federal Reserve Chair Jerome Powell’s speech later today. His comments are expected to influence short-term market trends across risk assets, including cryptocurrencies. Looking for signs of a possible interest rate cut later this month.
However, the ongoing US government shutdown has limited access to fresh economic data. Analysts expect Powell to maintain a neutral tone due to the uncertainty surrounding the economy.
Short Positions Rise as Technical Indicators Turn Bearish
On-chain data shows that a whale wallet known as BitcoinOG, which shorted BTC before Friday’s decline, has expanded its short position to over 4,394 BTC. Two other major traders on Hyperliquid have also opened large short positions, expecting a further downturn.
Technical indicators support the bearish outlook. The RSI on the 4-hour chart stands at 42, which is below the neutral level of 50, indicating weak momentum. The MACD also remains bearish following last week’s crossover.
If the selling pressure continues, Bitcoin could fall toward the next major support near $107,245. A recovery above $115,000 would be needed to shift sentiment back toward a bullish trend.