Crypto influencer and trader Carl Runefelt, known as "The Moon," has sold two Ferraris worth a combined $2.5 million to increase his exposure to Bitcoin (CRYPTO: BTC). In a podcast on Friday, Runefelt argued that Bitcoin is approaching one of its most historically significant support zones, presenting a rare accumulation opportunity for investors willing to deploy capital at these levels.

Runefelt pointed to the 200-week moving average, a long-term technical indicator that reflects Bitcoin’s average price over approximately four years and broadly aligns with the cryptocurrency’s halving cycle. He stated that this indicator has previously coincided with major market bottoms, suggesting that the current decline offers a strategic entry point rather than a signal of further distress.

Strategic Entry and Leverage Risks

Rather than entering his entire position at one price, Runefelt said he places several limit orders throughout the support zone to build an average entry. He cautioned against using significant leverage around long-term technical levels because Bitcoin can briefly fall below widely watched support before reversing. Sharp declines can trigger stop-loss orders and liquidations positioned beneath the moving average, wiping out leveraged traders immediately before a potential rebound.

Runefelt claimed he currently has more than $2.5 million in Bitcoin positions open on MEXC, in addition to another profitable position on Bybit. This allocation underscores his conviction in the asset’s near-term recovery potential despite broader market volatility.

Historical Precedents

Runefelt cited several previous occasions when Bitcoin traded near or below its 200-week moving average before beginning major rallies:

"Historically, each of these touches has marked a bottom right before the next parabolic rally," he said. Runefelt also pointed to the 2022 bear market, when Bitcoin remained below the long-term average for several months before recovering in the subsequent cycle, reinforcing his view that patience and disciplined entry strategies are critical during such periods.

Bitcoin (CRYPTO: BTC) price slipped below the key $64,000 support level as spot exchange-traded funds (ETFs) recorded outflows for a second consecutive day. The asset has now retreated for four consecutive days, driven by declining odds that the CLARITY Act will be signed into law and growing concerns over potential Federal Reserve interest rate hikes. This combination of regulatory uncertainty and macroeconomic pressure has intensified selling pressure on the cryptocurrency.

Spot Bitcoin ETF outflows accelerated significantly, with funds losing over $240 million in assets on Friday following a $225 million loss the previous day. Consequently, the net weekly inflow stood at $33 million, a sharp decline from the previous week’s $75 million. BlackRock’s IBIT ETF led the exodus, shedding over $212 million on Friday, while Fidelity’s FBTC lost over $27 million. These figures signal a notable reduction in demand among American institutional investors.

The selling pressure coincided with deteriorating prospects for the CLARITY Act, legislation aimed at shifting crypto regulatory power from the SEC to the more lenient CFTC. Despite bipartisan support for key sections, opposition from Democrats and consumer watchdog groups has stalled progress. Critics argue current provisions fail to prevent President Donald Trump and his family members from issuing tokens, citing disclosures that Trump earned over $1.4 billion in crypto profits last year.

Market expectations for the CLARITY Act have soured considerably. Odds of the bill being signed into law have dropped to just 35% on Polymarket, down from 75% earlier this year. This regulatory ambiguity adds to the headwinds facing Bitcoin, which also faces resistance from macroeconomic factors. Odds that the Federal Reserve will hike interest rates this year have jumped to over 70%, driven by economic impacts from the ongoing US-Iran war. Historically, Bitcoin and other risk assets underperform in high-interest-rate environments.

What the Numbers Show

The divergence between recent weekly inflows and daily outflows highlights shifting investor sentiment. While the week still ended with a net positive inflow of $33 million, the magnitude of Friday’s $240 million outflow suggests accelerating capital flight. This trend is particularly concerning given that IBIT, typically a primary beneficiary of institutional interest, saw its largest single-day loss in the period. The simultaneous drop in CLARITY Act odds and rise in Fed hike probabilities creates a dual-threat scenario for risk assets.

Technically, Bitcoin’s weakness is reflected in its failure to hold above key resistance levels. Price action shows BTC retreated after hitting a crucial resistance level of $67,018, its highest point since June 15. This formation indicates a double-top pattern, a common reversal signal. Additionally, the coin found resistance at the 100-day Exponential Moving Average (EMA) and moved below the Supertrend indicator. As long as Bitcoin remains below the $67,018 resistance level, it is likely to stay under pressure. A breakout above this threshold would be required to signal further gains, potentially targeting the psychological level of $70,000.