Bitcoin is striving to recover from a critical support zone around €92,500, sparking hopes of a short-term technical rebound. However, massive outflows from Bitcoin ETFs and a rare alert signal on the weekly chart raise doubts. Amidst buying opportunities and the risk of a bull trap, where does Bitcoin truly stand?
Bitcoin is currently trading in a delicate technical configuration that’s dividing traders. After plunging toward the $92,500 to $94,000 zone, corresponding to the Fibonacci golden pocket, BTC is showing oversold signals on the daily chart. This buyer reaction from this key level provides a temporary foundation for a potential technical bounce. However, the macroeconomic context and institutional flows tell a very different story.
Selling pressure maintains its grip on the market. The overbought conditions observed during previous peaks have given way to persistent bearish momentum. The $99,000 to $100,000 zone, formerly support, is transforming into major resistance. Any rally from current levels will need to overcome this psychological and technical barrier before considering a sustained recovery.
The numbers speak for themselves: last Thursday, approximately $866 million left spot Bitcoin ETFs, followed by an additional $492 million on Friday. BlackRock, the asset management giant, alone recorded outflows of $463 million on that single day. These massive withdrawals are not insignificant for market structure.
When investors withdraw capital from an ETF, the issuer must liquidate an equivalent amount of Bitcoin to honor redemptions. This mechanism directly injects selling pressure on the spot market. Recent BTC declines coincide perfectly with these negative flows, transforming ETFs from a bullish catalyst into a vector for bearish volatility.
This institutional dynamic weighs heavily on market sentiment. Trading volumes remain elevated, but primarily oriented toward selling. Without a reversal of these ETF flows, it’s difficult to imagine a lasting recovery beyond simple technical bounces on support zones.
The weekly SuperTrend indicator has just issued its first bearish reversal signal since early 2023. This system, renowned for filtering market noise and identifying major trend changes, is not yet confirmed. A weekly close below $96,000 would definitively validate this shift, potentially marking the end of the current bull cycle.
Even more concerning, Bitcoin displays a clear bearish divergence between price and RSI. While BTC has formed successive higher highs in recent months, the relative strength index is drawing declining peaks. This classic configuration betrays a progressive exhaustion of buying strength and generally announces a slowdown or even trend reversal.
The daily technical structure confirms this weakness. The downward break of the $99,000 to $100,000 zone constitutes a significant support break. In technical analysis, a former support becomes resistance once broken. Buyers who defended this zone become potential sellers on any return toward these levels.
Currently at $95,500, Bitcoin is approaching its first test between $95,800 and $96,600. If this level is broken, it will seek the next crucial resistance zone between $96,600 and $100,400.
It’s worth noting that numerous shorts are to be liquidated up to $98,600. This will therefore be a crucial price that could be synonymous with profit-taking and bearish reversal.
A bounce from current levels remains possible, but its sustainability will depend on Bitcoin’s ability to reclaim $105,000 with volume and conviction. Without this recovery, the market risks becoming mired in several weeks of sideways consolidation or gradual decline. Experienced traders are closely watching price behavior on these critical zones before repositioning.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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