Bitcoin Price Holds at $89k Amid Significant ETF Outflows

Summary:
Bitcoin's price has stagnated around the $89,000 mark as the demand for its spot exchange-traded funds (ETFs) continues to decline. Recent data showcases substantial outflows from these investment products, indicating a potential downturn in institutional interest.

Key Takeaways

Bitcoin's price traded near $89,000 but slipped to $84,580 before recovering slightly.
Spot Bitcoin ETFs experienced net outflows of $497.05 million in just one week.
BlackRock's IBIT faced the highest outflows among ETFs at $240.3 million.
Institutional demand appears to be weakening, contrasting sharply with previous inflow trends.
Traders are observing key support and resistance levels as they await further market direction.

Bitcoin price stalls at $89k as weekly ETF outflows top nearly $500M.

Bitcoin Price Analysis

Bitcoin's price was stable around $89,000 on Monday, but the interest in its spot exchange-traded funds (ETFs) was diminishing. Data from SoSoValue indicates that the 12 spot Bitcoin ETFs collectively saw significant net outflows totaling $497.05 million between December 15 and December 19. Notably, BlackRock’s IBIT experienced the most substantial outflow, with $240.3 million exiting the fund. Bitwise’s BITB and ARK 21Shares’ ARKB recorded outflows of $115.1 million and $100.7 million, respectively. Additional outflows were observed from VanEck’s HODL, Grayscale’s GBTC, and BTC funds, totaling $74.1 million. In contrast, Fidelity FBTC was the only ETF to witness inflows, gaining $33.1 million this week.

These outflows hint that institutional interest in these investment products may be declining, continuing a trend from the past month during which these funds saw approximately $3.5 billion in net outflows. This sharp reversal follows a strong inflow of nearly $7 billion in October, coinciding with Bitcoin reaching an all-time high.

Bitcoin

Bitcoin saw a drop of 6% from about $90,000 to a low of $84,580 on Friday but later climbed back to around $89,800 before retreating to about $89,100 at the time of this report, representing a modest increase of 1% over the past 24 hours.

The lackluster performance of the spot ETFs, combined with low liquidity typically seen during the holiday season and overarching macroeconomic anxieties, has resulted in subdued Bitcoin price action. Traders are in a cautious mode, awaiting important U.S. economic data releases, including GDP and jobless claims, scheduled for Thursday, December 25.

Technical Indicators

On the daily chart, multiple bearish signals have emerged that historically precede significant market corrections. Specifically, Bitcoin has been forming a bearish flag pattern since late October. At the time of reporting, Bitcoin was close to breaching the lower trendline of this pattern, which could indicate further downside in the short term.

Bitcoin price has formed multiple bearish patterns on the daily chart — Dec. 22 | Source: crypto.news

A breakdown from this bearish flag could also confirm a larger inverse cup and handle pattern breakdown, as highlighted in previous analyses. With these bearish indicators on the chart, Bitcoin may remain under pressure until a clear reversal signal or fundamental catalyst arises to shift the trend.

Currently, traders are monitoring the $85,220 level, which serves as immediate support and has historically functioned as a solid price floor where bullish activity tends to emerge. Should Bitcoin drop below this level, prices may head toward the psychological support around $80,000.

On the upside, $91,415 is identified as the key resistance level, aligning with the 23.6% Fibonacci retracement level drawn from Bitcoin’s all-time high in October to its sharp decline in November. Breaching this resistance will be critical for any significant upward momentum.