Bitcoin Down 30% as ETF Outflows Near $3B; Watch $85.6K
Bitcoin is undergoing a 30% correction from its intraday high, with prices slipping below $89,000. Bitcoin ETFs have experienced nearly $3 billion in net outflows this month, driven by fading Fed rate-cut expectations and a stronger US dollar. Technical indicators show the 14-day RSI is deeply oversold, but key support lies at the 78.6% Fibonacci retracement near $85,600 and the one-year low around $74,000. Crypto traders should monitor these support levels and ETF flows for signs of a trend reversal.
Bearish
Heavy ETF outflows nearing $3 billion this month have coincided with a 30% price decline from Bitcoin’s intraday high. The sell-off accelerated despite oversold RSI readings, indicating persistent bearish sentiment. Key support at $85,600 (78.6% retracement) and $74,000 (one-year low) must hold before buyers re-enter. Similar large institutional outflows in past corrections led to extended downtrends. Short-term traders are likely to sell rallies, while a break above the bearish channel and a higher low will be needed for a sustained recovery.