Cryptocurrency markets remained depressed in November after Bitcoin failed to break through the $107,000 resistance level earlier this week.
The ensuing selling pressure pushed Bitcoin below $97,000 for the first time since May.
With the bears currently in control, Bitcoin may test lower support levels in the short term.
Spot Bitcoin ETF suffers huge outflows, sending BTC below $97,000
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Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red zone after corrections of over 5%, 10%, and 2%, respectively.
Bitcoin has fallen below the $97,000 level for the first time since May, but ETH and XRP are facing rejection at resistance levels, indicating that the bears remain firmly in control and a deeper correction may be underway.
The weak performance comes as the U.S. spot Bitcoin exchange-traded fund (ETF) reported net outflows of $869.9 million on Thursday, the second-largest outflow on record.
Grayscale Bitcoin Mini Trust recorded $318.2 million in outflows on Thursday, data obtained from SoSoValue revealed.
This was followed by BlockRock’s IBIT, with investors withdrawing $256.6 million from the fund.
Fidelity’s FBTC saw $119.9 million exit the fund, while Grayscale’s GBTC and Ark, 21Shares, Bitwise, VanEck, Invesco, Valkyrie, and Franklin Templeton ETFs all had net outflows.
Yesterday’s outflow was the second largest in history, after the $1.14 billion outflow recorded on February 25th. Vincent Liu, chief investment officer (CIO) of Cronos Research, commented in an interview with The Block:
Huge capital outflows signal a risk-off reset and reflect financial institutions retreating amid macro noise. While this trend weighs on short-term momentum, it does not undermine broader structural demand. These outflows coincide with oversold conditions and open the door for long-term opportunists.
Bitcoin prices may face further downward trends as institutional demand for Bitcoin-related products declines.
Bitcoin turns bearish
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The BTC/USD daily chart remains bearish and efficient as Bitcoin has not risen in recent weeks.
Bitcoin faced rejection earlier this week at the 38.20% Fibonacci retracement level at $106,453 and has since lost more than 7% of its value. At the time of writing, Bitcoin is trading at $96,800.
The daily relative strength index (RSI) was 39, below the neutral level of 50, indicating strong bearish momentum.
The moving average convergence divergence also indicates a bearish crossover, indicating that sellers are now in control.
If the correction continues and the daily candlestick closes below $97,460, a further decline towards the key psychological level of $95,000 is possible. If the bearish trend persists, BTC could retest the $93,000 low.
On the other hand, if Bitcoin recovers from its recent slump, it could move higher.
The 38.20% Fibonacci retracement is $106,453. The $110,000 level remains a strong short-term resistance point.
