Bitcoin (BTC) Price Drops as Record BTC ETF Outflows Mount: Will $97K Support Hold?

Bitcoin's price movement has taken a downward turn amid mounting selling pressure.

Bitcoin’s price dropped below a key support level on Monday amid mounting selling pressure, as evidenced by record-breaking net outflows from U.S. Bitcoin ETFs.

Analyst Crypto Patel highlighted in a tweet that Bitcoin is facing downward pressure and is now testing the $97,000 support. Holding this level could set the stage for a rebound, but a breakdown might lead to further losses.

“Bitcoin EW Update: Key Support Levels in Focus,” Patel wrote. “Support Levels: $97,000: A critical support level. Holding above this could trigger an upward move.”

According to an analysis of Patel’s chart, key retracement levels are situated at $91,000 and $86,000, corresponding to 0.382 and 0.5 Fibonacci levels, respectively.

Moreover, the Elliott Wave analysis shared in the tweet positions BTC in a corrective Wave IV, suggesting the potential for a further pullback before a final upward move in Wave V.

Patel also highlights a rising channel pattern, with the lower boundary acting as a dynamic support. Resistance levels at $103,000 and $108,000, aligned with recent swing highs and wave extension targets, pose challenges for upward momentum.

Adding to Bitcoin’s challenges, Spot On Chain reported the largest net outflow from U.S. Bitcoin ETFs since their launch.

A total of $671.9 million exited these funds, with Fidelity’s FBTC ETF seeing a $208.5 million outflow. Meanwhile, BlackRock’s IBIT ETF maintained steady flows, marking a contrast within the ETF landscape.

“The U.S. BTC ETFs just experienced their LARGEST net outflow since launch: $671.9M!” Spot On Chain wrote in a tweet.

This activity also ended a 15-day inflow streak for BTC ETFs and an 18-day streak for Ethereum ETFs, indicating a broader cooling in investor sentiment.

“This also marks the end of a 15-day inflow streak for BTC ETFs and an 18-day streak for ETH ETFs.”

Market Indicators and Projections

Crypto Patel notes that a decline toward $86,000-$91,000 aligns with Fibonacci retracement levels, signaling the potential for consolidation or a further dip.

According to CoinGecko, Bitcoin trades at $97,957.26, down 3.27% in the last 24 hours and 1.85% over the past week. These movements align with the technical analysis suggesting a potential continuation of the corrective phase before any upward momentum resumes.