Bitcoin price erases 21% from January ATH amid spot ETF outflows
BTC struggles below $89.4K amid weak demand
Bitcoin price is struggling to regain momentum after its recent sharp decline. The alpha cryptocurrency now faces strong resistance levels as ETF outflows signal weak institutional demand.
Yesterday, Bitcoin dropped 7% to a three-month low of $86,000, extending its weekly loss to 10% and its February decline to 12.3%. The broader selloff has now erased 21% from the all-time high set in January. With Bitcoin currently consolidating below last month’s low of $89,400, price action suggests a challenging recovery ahead.
Institutional flows reflect the ongoing weakness. On February 25, U.S. spot Bitcoin ETFs recorded their largest daily net outflows, with a combined $937.9 million exiting the market. This marked the sixth consecutive trading day of outflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) saw the biggest single-day redemption at $344.7 million, a record for the ETF. BlackRock’s iShares Bitcoin Trust (IBIT) followed with $164.4 million in outflows. So far in February, around $2.4 billion has exited Bitcoin ETFs, highlighting waning institutional interest.
BTC price forecast: RSI enters oversold territory but resistance caps upside
Bitcoin price dynamics (Jan 2025 - Feb 2025). Source: TradingView
In the early European session, Bitcoin is trading around $88,600, showing little sign of immediate upside momentum as it remains under key resistance levels, limiting recovery prospects. The previous month’s low of $89,400 has now turned into near-term resistance, with an even stronger barrier at $91,250, which was the December 2024 low and a previously significant support level.
Indicators suggest a potential short-term reaction, but strong resistance remains in play. Bitcoin’s RSI on both the daily and 4-hour charts has fallen into oversold territory, which may encourage some buyers to accumulate longs. However, the multiple layers of resistance ahead mean that any recovery attempt faces significant hurdles. A decisive break above $91,250 would be needed to shift sentiment, while failure to reclaim these levels could leave Bitcoin vulnerable to further downside.
Bitcoin broke below the 100-day EMA at $94,000, reinforcing its broader downtrend. Weak market sentiment drove a 5% decline, pushing the price to a six-week low of $91,000.
