Bitcoin Sell-Off Lacks Fresh Capital as Inflows Turn Negative
Bitcoin is failing to reclaim key resistance as market demand weakens and new investor inflows have turned negative, according to CryptoQuant. Cumulative 30-day flows sit near −$2.6 billion, indicating sustained outflows rather than the accumulation typical of bull-market corrections. On-chain metrics show marginal buyers stepping back; liquidity is contracting and price moves are driven by internal rotation among existing holders rather than fresh capital. Technically, BTC has broken below short- and medium-term moving averages with a deteriorating weekly structure since the $120K–$125K rejection, forming lower highs and greater downside volatility. Elevated sell-side volume suggests distribution and forced liquidations. Critical support zones to watch are $65K–$70K and the longer-term trend line in the high-$50K area; a decisive break below $62K–$65K risks deeper retracement. For traders, the lack of inflows reduces the probability of a sustainable trend reversal: expect corrective rebounds and higher volatility until consistent new demand returns.
Bearish
The report documents negative 30-day net inflows (≈−$2.6B), falling participation from marginal buyers, liquidity contraction, and technical deterioration (lower highs, breaks below short/medium moving averages). These factors historically align with early bear-market dynamics where declines are met by outflows rather than accumulation. Elevated sell-side volume and signs of forced liquidations increase downside risk in the short term, making sustainable rallies unlikely until capital inflows resume. Short-term impact: higher volatility, increased risk of deeper retracements if $62K–$65K fails. Medium-to-long term: if inflows remain negative, market structure may shift toward prolonged consolidation or a deeper correction; conversely, a return of consistent inflows around key demand zones (65K–70K or high-50Ks) would be required to reestablish bullish momentum. This assessment parallels prior episodes (e.g., post-2021 peaks and mid-2022) where negative net flows and liquidity shrinkage preceded extended corrective phases.