Bitcoin Adopts a Cautious Stance as Major Indicators Show Decline

Market Sentiment Weakens: Bitcoin's short-term outlook is deteriorating as funding rates decline, ETF inflows remain minimal, and open interest shows traders reducing exposure, indicating a lack of bullish conviction and a market that is indecisive.

Order Book Dynamics: The order book reveals significant sell-side pressure and weak buy-side depth, creating a tight trading range with resistance above and support below, which limits the potential for price breakouts without new capital entering the market.

ETF Flows and Macro Conditions: ETF flows have stalled, failing to provide necessary support for Bitcoin's price, while the U.S. Dollar Index (DXY) offers some stability; however, the overall market remains vulnerable due to internal weaknesses.

Need for a Catalyst: The upcoming rate-cut meeting could introduce volatility, but the market's current structure is fatigued and lacks strong directional momentum, suggesting that a disappointing outcome could lead to a swift downturn.