Bitcoin trades below resistance
Bitcoin has come under renewed scrutiny as signs of institutional wobbles and macro pressures align to challenge its momentum.
Recent data show that spot Bitcoin exchange-traded funds (ETFs) experienced major outflows of approximately $2.5 billion in redemptions last week – an abrupt shift after months of sustained inflows.
This pattern has contributed to a noticeable drop in Bitcoin’s market value, with price slipping into the mid-US$90,000.00 range and more than $450 billion wiped off the broader crypto market cap.
The unfolding narrative for Bitcoin is therefore one of tension between structural strength and near-term stress.
Where recent inflows and growing allocation suggest long-term institutional conviction remains intact, the heavy outflows and price weakness point to a reset of risk appetite in the short-term.
The coming days will likely test whether resistance between $90,000.00-to-$100,000.00 caps or whether institutional flows can re-accelerate. Should they do so, Bitcoin may attempt to resume its upward leg; if not, the recent weakness may deepen and lead to further downside.
Bitcoin bearish case:
As long as the $98,330.30-to-$99,169.54 resistance area caps, downside pressure will remain in place with the $92,000.00 region and potentially the mid-January low at $89,224.11 remaining in focus.
Bitcoin bullish case:
Were Bitcoin to experience a bullish reversal which would take it above the psychological $100,000.00 mark, the 11 November high at $107,461.75 may be back in play. It would need to be exceeded, though, for the current medium-term downtrend to be invalidated.