by Enoch Mwathwa
Bitcoin hovered near the $90,000 level as selling pressure from spot ETFs capped upside attempts. Weak institutional flows and thin holiday liquidity slowed momentum. As a result, traders shifted to defense mode while watching key support levels closely.
ETF Outflows Weigh on Bitcoin as Institutional Demand Slips
Spot Bitcoin ETFs posted heavy losses over the past week. Data from SoSoValue shows nearly $497 million in net outflows between Dec. 15 and Dec. 19. BlackRock’s IBIT led the decline, with over $240 million exiting the fund. Bitwise’s BITB and ARK 21Shares’ ARKB followed close behind.
Moreover, VanEck’s HODL and Grayscale’s GBTC and BTC products added more pressure. Together, they accounted for over $74 million in additional outflows. Fidelity’s FBTC stood out, however, after recording $33 million in weekly inflows. Still, that inflow failed to offset broader weakness.
These figures confirm a clear shift in sentiment. Over the past month, Bitcoin ETFs have shed roughly $3.5 billion. That trend contrasts sharply with October, when inflows topped $7 billion as BTC hit record highs. For now, institutions appear cautious rather than aggressive.
BTC Price Action Weakens as Bears Defend Key Resistance
Bitcoin dropped nearly 6% last week after failing to hold above $90,000. The sell-off pushed BTC down to $84,580 before buyers stepped in. Since then, price has bounced but struggled to regain traction above $89,500.
Low liquidity has worsened the situation. Holiday trading volumes remain thin. At the same time, traders wait for key U.S. data releases. GDP figures and jobless claims could shape near-term risk appetite. Until then, the price may stay range-bound.
Technical signals also favor caution. On the daily chart, Bitcoin price continues to trade within a bearish flag. This structure formed in late October and remains intact. Price now sits near the lower trendline, which increases downside risk.
A confirmed breakdown could trigger further losses. That move would also validate a larger inverse cup-and-handle pattern. Both patterns often signal extended corrections. As a result, bulls face a tough test in the days ahead.
Support at $85,220 remains critical. Buyers defended this level several times in recent weeks. A clean break below it could open the door to $80,000. On the upside, resistance stands near $91,415. Bulls must reclaim that level to regain control.
Market Outlook Hinges on Flows, Liquidity, and Macro Signals
For now, Bitcoin trades in a fragile balance. ETF outflows continue to drain momentum. At the same time, macro uncertainty limits risk-taking. Without a strong catalyst, upside attempts may stall again.
Still, sentiment can shift quickly. A slowdown in outflows could stabilize prices. Strong macro data could also revive demand. Until then, traders will likely focus on short-term levels rather than long-term bets.
Bitcoin remains in consolidation mode. The next breakout, up or down, will likely depend on institutional flows and broader market direction.
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