Bitcoin is down 4.36% in one week after sentiment weakened following a major hack. Separately, Dallas Fed President Lorie Logan called for at least two more rate hikes. Bitcoin ETFs posted their largest single-day outflow since June, and Bitcoin could test support near $70,700 if selling pressure persists.
Bitcoin now trades at $77,149, down 4.36% over the past week. The drop follows weaker sentiment after the biggest hack in crypto history.
Logan says the Fed needs at least two more hikes
In an October 30 speech, Logan said the Fed needs to hike rates at least two more times to control inflation, which remains above the 2% target. She was among the policymakers who voted to hold rates between 3.75% and 4.00% at the October 28 meeting.
Markets are also pricing in a rate hike. CoinGape prediction markets show 55% of traders betting on a hike at the December 8 FOMC meeting. The European Central Bank and the Bank of Japan are also expected to hike interest rates in December.
Bitcoin ETFs see the biggest outflow since June
Logan's speech coincided with a surge in Bitcoin ETF outflows. SoSoValue data shows $643 million left the funds on October 30, the highest single-day outflow since June 25. Net weekly outflows came in at $202 million.
Futures traders, however, are adding exposure. CoinGlass data shows that open interest rose to 694,490 BTC, the highest since late September, up from 619,670 BTC on October 12.
Weekly chart points to $70,700 support
On the weekly chart, Bitcoin has dropped below support at the 50-day EMA of $78,500 as the short-term trend turns bearish. If selling pressure persists, BTC might test support at the $70,700 midline of an unfilled FVG gap between $65,000 and $76,000.
A breakdown below that midline may push BTC below $70,000 toward the 200-day EMA. Lower timeframes, though, suggest the bearish pressure may be easing, because the four-hour RSI has made a higher low, although it remains below 50.
Source: CoinGape
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