Bitcoin's (BTC) price fell below the $61,000 mark after the first spot Bitcoin exchange-traded funds (ETFs) went live in Hong Kong. Is Bitcoin at risk of going below $60,000 in the next few days?

BTC price falls below $61K as Hong Kong ETF launches

Bitcoin fell to a weekly low of $60,543 on April 30, a day after the launch of the first batch of spot Bitcoin ETFs in Hong Kong. The world’s first cryptocurrency is down over 7.3% on the weekly and 13% on the monthly chart, according to CoinMarketCap.

The Hong Kong-based ETFs only amassed $12.4 million in trading volume during the first day, which pales compared to the first-day trading volume of U.S. spot Bitcoin ETFs, valued at $4.6 billion.

However, this is a high figure considering the size of the Hong Kong market, equivalent to $1.6 billion worth of trading volume in the United States, according to senior Bloomberg ETF analyst Eric Balchunas.

Balchunas wrote in an April 30 X post:

“You have to understand [that Hong Kong] is 1/168th the size of the U.S… That said, Hong Kong ETFs launched at a good time as the U.S. is slowing, so their $141m+ in inflows going to more than offset slightly negative U.S. flows.”

Approximately 14% of the $12.4 million daily trading volume was captured by spot Ether ETFs in Hong Kong with 86% flowing into Bitcoin-based ETFs.

Bitcoin ETF news "gets absorbed"

Bitcoin’s price drop after the debut of Hong Kong ETFs is a typical "sell-the-news" event, according to Mehdi Lebbar, the co-founder of institutional-grade risk assessment platform Exponential.fi. He told Cointelegraph:

“Market participants often anticipate these events, leading to a price surge prior to the actual news, and subsequently take profits once the news is public. This pattern suggests a tactical response from short-term traders to capitalize on the hype, followed by a correction as the news gets absorbed.”

Over in the United States, weekly Bitcoin ETF net flows remain negative. The ten Bitcoin ETFs saw over $257 million worth of negative net outflows this week, down from over $396 million in negative outflows during the previous week, according to Dune data.

The U.S.-based ETFs were a significant part of Bitcoin’s price appreciation in 2024. By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark, according to CryptoQuant research.

Related: Bitcoin outperforms Tesla stock for the first time since 2019

More downside ahead for Bitcoin?

Bitcoin was already on a downward trend over the previous weeks, which could see it fall below the $60,000 mark, according to Ben Caselin, the CMO of VALR exchange. He told Cointelegraph:

“Bitcoin could certainly descend below $60,000 and could certainly see resistance for a few weeks, but ultimately the effects of the Halving will kick in and so most long-term holders of Bitcoin would take this period of time as an opportunity.”

While Bitcoin may indeed fall below the $60,000 psychological mark, it could present a good buying opportunity for long-term holders, in line with corrections from previous post-halving rallies, according to Lebbar, the co-founder Exponential.fi:

“If Bitcoin's price goes below this mark, it may further slide towards the $52,000 support level. This support could present a significant buying opportunity, especially since long-term investors often benefit from acquiring during such dips.”

Over $306 million worth of cumulative leveraged long positions would be liquidated across all exchanges if Bitcoin's price fell below $60,000, according to Coinglass.

As Cointelegraph reported the key levels to watch will be around $60,000 and $51,000.

Traders should keep a close eye on the key $60,000 support level this week, according to Matt Bell, the CEO of open-source software firmTurbofish. He wrote:

“Key levels this week include psychological supports like $60,000 and resistances like $65,000 while monitoring sentiment, institutional activity, and macro factors adds context.”

Related: 'China is about to start bidding' — Will Hong Kong Bitcoin ETFs spark the halving rally?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.