After last week’s volatility sparked by CPI data and the Fed meeting, Bitcoin markets experienced a more subdued week.

Bitcoin traded mostly sideways, starting at around $67,000, peaking at $67,750, and then reversing to test the lower support at $63,400. It ultimately closed the week at $64,320, marking a modest decline of just over 2%.

Spot ETF Flows Update

After a bullish run in spot ETF flows from mid-May to early June, this week saw a distinct reversal with five consecutive days of outflows. The largest outflows came from Fidelity’s FBTC fund, which saw $92 million withdrawn on Monday. None of the major ETF issuers reported positive inflows. In total, over $544 million in outflows were reported, bringing the total net assets down to $55.5 billion, a drop of about $7 billion from last week’s all-time high of $62.5 billion. Despite this, total net assets are still significantly higher than the late April low of $47 billion.

Bitcoin Dominance

The Bitcoin dominance metric, which measures the percentage of the total crypto market cap held in Bitcoin, continues its weekly uptrend. By the end of this week, bitcoin comprises over 55.31% of the total crypto market capitalization, representing about $1.267 trillion of the $2.34 trillion overall market cap.

This highlights bitcoin’s resilience amid recent market bearishness, as many altcoins have experienced double-digit declines in the past several weeks.

Options Derivatives Data

The options market for bitcoin remained skewed with about a 2-to-1 ratio favoring call contracts over puts. This indicates that traders in the derivatives markets are expecting bitcoin to move upwards in the coming weeks. However, it is important to note that the intent of these market participants is unclear. It’s also possible that call buyers could also be hedging their short positions in the leveraged futures markets.

Bitcoin Balance Exchange Flow

Despite bitcoin’s price decline this week and the reversal in ETF flows, there are some bullish on-chain metrics to consider. Notably, there has been a continuous decrease in the balance of bitcoin on exchanges. This indicates that investors and traders are moving their bitcoin holdings off exchanges, theoretically reducing sell pressure in the overall market.

At the end of May, there were 2.55 million coins held on exchanges. By the end of this week, that number had dropped to 2.47 million, representing a decrease of over 3%.

Volatility Compression

The BBWP (Bollinger Band Width Percentile) is a popular technical indicator that measures the degree of volatility in various assets. When applied to bitcoin on the weekly timeframe, it shows that volatility is at extremely low levels — the lowest reading in over a year.

This often precedes a significant price movement, indicating that bitcoin is likely to experience a major move soon, though the direction is uncertain. Traders should be prepared for potential breakout opportunities as the market transitions from this low-volatility phase.

Major weekly resistance is essentially $70,000 while major weekly support is at $60,000. A break above or below these major levels on the weekly timeframe will likely be a catalyst for the next big trending move.

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