Record BTC ETF Outflows Pressure Bitcoin: Will $97K Support Hold?

Bitcoin’s price movement has taken a downward turn amid mounting selling pressure. 

Analyst Crypto Patel, via a tweet, emphasizes Bitcoin’s current battle to maintain its position above $97,000, a crucial support level. Alongside this, Spot On Chain highlights a record-breaking net outflow in Bitcoin ETFs, adding another layer to the discussion.

Bitcoin’s Current Price Action and Support Levels

As per an analysis of Crypto Patel’s chart, Bitcoin is grappling with downward pressure and is now testing the $97,000 support. Holding this level could set the stage for a rebound, but a breakdown might lead to further losses. 

The chart identifies key retracement levels at $91,000 and $86,000, corresponding to 0.382 and 0.5 Fibonacci levels, respectively. 

Moreover, the Elliott Wave analysis shared in the tweet positions BTC in a corrective Wave IV.  This suggests the potential for a further pullback before a final upward move in Wave V. 

Patel also highlights a rising channel pattern, with the lower boundary acting as a dynamic support. Resistance levels at $103,000 and $108,000, aligned with recent swing highs and wave extension targets, pose challenges for upward momentum.

Read also: Monero (XMR) Price Approaching Resistance: Is a Major Move Coming?

ETF Outflows Break Multi-Week Streak

Adding to Bitcoin’s challenges, Spot On Chain reported the largest net outflow from U.S. Bitcoin ETFs since their launch. 

A total of $671.9 million exited these funds, with Fidelity’s FBTC ETF seeing a $208.5 million outflow. Meanwhile, BlackRock’s IBIT ETF maintained steady flows, marking a contrast within the ETF landscape.

This activity also ended a 15-day inflow streak for Bitcoin ETFs and an 18-day streak for Ethereum ETFs, indicating a broader cooling in investor sentiment.

Market Indicators and Projections

Crypto Patel notes that a decline toward $86,000-$91,000 aligns with Fibonacci retracement levels, signaling the potential for consolidation or a further dip.

According to CoinGecko, Bitcoin trades at $97,957.26, down 3.27% in the last 24 hours and 1.85% over the past week. These movements align with the technical analysis suggesting a potential continuation of the corrective phase before any upward momentum resumes.

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