There's a constant pattern in the markets.
#Bitcoin tends to correct heading into the month's end, then, in the first weeks of the month, it reverses and becomes bullish again.
This month is no different.
The last few days have shown a constant outflow from the ETF—most likely due to high-watermark resets by hedge funds.
Given that Bitcoin has been performing well this month and Gold's volatility has declined, we can expect a good start to May again.
Outflows at the end of the month don't automatically mean that it's bearish. It can simply be structural closing factors.
Interesting fact: the first 7 days of the month are, 75% of the time, positive-flow days.
Why?
- Potential monthly DCA by investors.
- Deposito timings for investors in the U.S.
- Institutional rebalancing, allocating assets into #Bitcoin (Again: lower gold volatility = good for Bitcoin allocations)
- New month starts for company treasury allocations
During the end phase of the month, you'll have a standard risk-off appetite where all those traders are taking their profits.
Would assume that we'll turn green again next week.
