- Bitcoin is trading around the resistance level of $64K while the buyers keep defending the support at above $63K.
- Hashdex will be closing its spot Bitcoin ETF after analyzing the liquidity of the fund and its demands.
- The U.S. spot Bitcoin ETF market is holding up to $77.6 billion, even with one fund being closed.
Bitcoin ETF developments coincided with Bitcoin trading near a technical inflection point, as the cryptocurrency attempted to extend its recovery while one of the smallest U.S. spot Bitcoin funds prepared to close.
Bitcoin traded within the range of $63,430 and $63,700 during the period after bouncing from its intraday low below $62,700. Technical signals indicated that buyers have made a little bit of short-term momentum.
Bitcoin Price Prediction Indicates $64K as Major Resistance Level
Bitcoin increased by roughly 1.3% compared to the last 24 hours, reaching up to $63,430 after bouncing from its level below $62,700. This bounce came after the daily trading volume increased by 44.55%, totaling $25.59 billion, while the market capitalization of the cryptocurrency reached $1.27 trillion.
However, the cryptocurrency was still trading lower than its 20, 50, 100, and 200 exponential moving averages, implying that the overall short-term trend has not changed.
The 200 EMA close to the price of $64,007 continues to be the key resistance. In the meantime, the 20 EMA close to $63,360 acts as the nearest support. The RSI indicator was measured at 51.18, just above its signal line at 48.16.
Further confirmation factors reinforced the same technical bias. The Bitcoin price was trading above the midpoint of the Bollinger Bands at $63,183, with the top Bollinger Bands level of $64,035 coinciding with the first resistance Fibonacci zone ranging from $64,035 to $64,186.
Source: Trading View
Resistance levels of the Fibonacci retracement higher up the chart are at $64,419 and $64,750. In terms of support levels, the lowest levels are at $63,183 and $62,330.
For further upward movements for Bitcoin, prices will have to be seen trading above $64,000.Failure to overcome that level could leave price trading between $63,000 and $64,000, with support continuing to hold around the middle Bollinger Band.
Bitcoin ETF Records First Planned U.S. Spot Fund Closure
While Bitcoin traded within a defined technical range, Hashdex confirmed plans to liquidate its Bitcoin ETF, DEFI, after reviewing the fund’s assets under management, liquidity, operating costs, investor demand, and its place within the company’s broader product lineup.
According to the filing submitted to the U.S. Securities and Exchange Commission (SEC), the fund’s final trading day will be Aug. 17. After trading ends, the remaining Bitcoin held by the fund will be sold, and shareholders will receive cash distributions from the liquidation proceeds.
The closure appears to represent the first planned liquidation of a U.S. spot Bitcoin ETF. Past ETF closures were related to Bitcoin futures-based products, such as VanEck’s XBTF in 2024, instead of ETFs that are invested in Bitcoin.
Smallest Fund Closes as Market Grows Bigger
Hashdex’s DEFI had approximately $14.7 million in net assets, thus making it the smallest spot U.S. Bitcoin ETF. Based on SoSoValue statistics, DEFI also has the lowest cumulative net flows compared to its competitors.
WisdomTree’s BTCW is the second-smallest ETF with net assets of approximately $142.4 million, while BlackRock’s IBIT is still the largest one with net assets of approximately $47.08 billion.
Although Hashdex is closing its fund, the broader U.S. spot Bitcoin ETF market continues to hold approximately $77.6 billion in combined net assets and has accumulated $51.5 billion in lifetime net inflows since the products were approved in January 2024.
Recent ETF Flows Reflect Changing Capital Allocation
Data from SoSoValue shows U.S. spot Bitcoin ETFs recorded net outflows during each of the past three months.
Hashdex’s announcement followed a period in which investors increasingly allocated capital toward artificial intelligence-related investments. Earlier, K33 Research’s Head Vetle Lunde pointed out that for some investors, the cost of owning Bitcoin could be seen as being relatively high compared to the gains from investments related to AI.
However, the BlackRock’s iShares Future AI & Tech ETF has managed to deliver a 39% gain since January up till July.
Technical Levels to Note
- Resistance: $64,007; then $64,186; $64,419, and $64,750.
- Primary support: $63,360, then $63,183 and $62,330.
- Momentum indicator: RSI at 51.18 remains neutral, suggesting no clear directional dominance.
Bitcoin ETF Market Snapshot
- Hashdex DEFI will stop trading on Aug. 17 before liquidation.
- The fund managed $14.7 million, the smallest among U.S. spot Bitcoin ETFs.
- The overall U.S. spot Bitcoin ETF market continues to hold $77.6 billion in net assets.
FAQs
Why is Hashdex closing its Bitcoin ETF?
Hashdex said it reviewed the fund’s assets under management, liquidity, operating costs, investor interest, and its position within the company’s product lineup before deciding to liquidate the fund.
When will the Hashdex Bitcoin ETF stop trading?
The fund’s final trading day is scheduled for Aug. 17, after which its Bitcoin holdings will be sold and cash proceeds distributed to shareholders.
What is the next important Bitcoin price level?
Technical indicators identify $64,000-$64,186 as the immediate resistance area. Support is located around $63,360 and $63,183, with additional support near $62,330.
