Bitcoin price dips to 9-day low amid $680M ETF outflows
BTC tests $95.5K support
Bitcoin has dropped below the $100,000 mark, raising questions about the sustainability of its recent bull run. After peaking at an all-time high of $108,200 on December 17, the cryptocurrency has faced a cumulative decline of 11%.
With technical indicators pointing to further downside risks and record-breaking outflows from spot Bitcoin ETFs, the market sentiment appears increasingly bearish.
BTC price dynamics (November-December 2024). Source: TradingView.
Bitcoin’s dip accelerated on December 19, when the price broke below $100,000 to hit a nine-day low of $95,500. This marked a continuation of the prior day’s 6% decline. Although the downward movement was temporarily cushioned by an upward trendline established in mid-November, the cryptocurrency remains under pressure.
ETF outflows add to Bitcoin bearish outlook
This price decline on Thursday came along with the largest single-day outflows from U.S. spot Bitcoin ETFs, with $680 million exiting the products and ending a 15-day streak of positive inflows which further weighed on market sentiment.
Fidelity’s FBTC led the outflows with $208.6 million, followed by Grayscale’s Bitcoin Mini Trust at $188.6 million and Ark’s ARKB at $108.4 million. Even Grayscale’s GBTC saw $87.9 million in outflows. Although, BlackRock’s IBIT, the largest spot Bitcoin ETF, reported zero flows, while WisdomTree’s BTCW was the sole fund to record inflows, with a modest $2 million.
Bitcoin is now trading at $98,000, with the 100 EMA at $100,000 acting as a significant resistance zone. The 4-hour chart reveals that the RSI has fallen below 50, but it hasn’t yet reached oversold territory—an indication that additional declines could be imminent if support levels fail.
Bitcoin’s near-term price action hinges on its ability to hold above the mid-November trendline. A sustained break below this level could shift the overall trend to bearish, potentially paving the way for further losses. Traders should closely monitor the $95,500 support and the $100,000 resistance, alongside the RSI and ETF flows, for clues on the next significant move.
The Federal Reserve Chair's opposition to a national Bitcoin reserve weighed Bitcoin. Bitcoin price fell sharply to $98,800 after breaking below the $100,000 support level.
