Bitcoin is going through its first real moment of doubt since the massive return of institutional capital to the crypto market. While spot ETFs record spectacular outflows and short-term traders sell at a loss, several analysts now fear a more brutal correction in BTC. Between signals of capitulation and resistance from long-term investors, the market is entering a decisive phase where technical supports could determine the continuation of the bullish cycle.
In brief
- Bitcoin is experiencing a new wave of selling pressure after massive outflows from US spot ETFs.
- More than 10,000 BTC were reportedly sold at a loss by short-term investors, a sign of renewed nervousness in the market.
- Several analysts are now monitoring the key levels of $76,000, $70,000 and $65,000 to anticipate the next phase of BTC.
- Despite this correction, on-chain data shows that long-term investors continue to accumulate Bitcoin.
Crypto market plunges back under selling pressure
Bitcoin has extended its correction as outflows from American spot ETFs suddenly accelerate. Indeed, Bitcoin ETFs saw $648.6 million in net outflows in a single day, while BTC-related investment products show $981.5 million in weekly withdrawals.
At the same time, CryptoQuant reports that more than 10,000 BTC held by short-term investors were sent to Binance at a loss, a sign of growing panic in the market. Trader Alek_Carter summary this change of atmosphere: “the markets are being shaken violently. Capital quickly leaves risky assets, panic begins to set in and traders massively reduce their exposure to risk..
A few levels now focus traders' attention:
- $76,000, considered a first major support;
- $74,500 to $76,000, a technical area monitored by Michael van de Poppe;
- $70,000, identified as a possible breakout retest area;
- 65,000 dollars, a threshold mentioned in the event of a downward acceleration.
Michael van de Poppe believes that the market remains under pressure as long as BTC struggles to regain these levels: “If this zone does not hold, the market is likely to plunge back towards the lows of the recent rally and test the $65,000 threshold as support”.
For his part, Alex Marzell evokes a possible return of bitcoin towards “the breakout zone located around the $70,000 support”. These projections come as the market has several consecutive daily red candles, reflecting a loss of momentum after the records reached earlier in the cycle.
Long-term investors continue to accumulate bitcoin
Despite this phase of tension, several on-chain data show that historical bitcoin holders are not deserting the market. HODL Waves indicators, which measure the length of time bitcoins are held, reveal a progression of positions held over the long term, a behavior often associated with institutional investors and the strongest portfolios on the market. This dynamic contrasts sharply with the sales of short-term traders, who are more exposed to immediate volatility and panic movements.
CryptoQuant also believes that the area between $65,900 and $70,500 could represent the potential floor of this correction. Analyst Sunny Mom explains: “our estimated price range for the low point of this cycle is between $65,900 and $70,500”. This reading highlights that the market could go through a purge phase before a possible trend recovery. Some investors also consider this decline as a necessary phase after several months of sustained growth fueled by spot ETFs and the arrival of new institutional capital.
What happens next will now depend on the ability of bitcoin to defend its major supports in the face of intensifying selling pressure. Stabilization above monitored areas could reinforce the idea of a temporary technical correction. Conversely, a clear break below $70,000 would revive fears of a deeper decline towards the levels mentioned by several analysts. In a market now dominated by institutional flows and rapid investor reactions, each session becomes a litmus test for the trajectory of BTC.
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