The cryptocurrency market has continued its poor performance in November as Bitcoin failed to overcome the $107K resistance level earlier this week.
The selling pressure that followed has seen Bitcoin drop below $97K for the first time since May.
With the bears currently in control, Bitcoin could test lower support levels in the near term.
BTC dips below $97K as spot Bitcoin ETFs suffer huge outflows
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Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red zone after correcting more than 5%, 10% and 2%, respectively.
Bitcoin has slipped below the $97K level for the first time since May, while ETH and XRP have faced rejection at their resistance levels, indicating that the bears remain firmly in control and that a deeper correction may be underway.
The bearish performance comes as US spot bitcoin exchange-traded funds (ETFs) reported $869.9 million in net outflows on Thursday, marking their second-largest outflows on record.
Data obtained from SoSoValue revealed that Grayscale’s Bitcoin Mini Trust recorded an outflow of $318.2 million on Thursday.
It was followed by BlockRock’s IBIT, with investors pulling out $256.6 million from the fund.
Fidelity’s FBTC saw $119.9 million leave the fund, while Grayscale’s GBTC and ETFs from Ark and 21Shares, Bitwise, VanEck, Invesco, Valkyrie, and Franklin Templeton, all posted net outflows.
Yesterday’s outflow was the second-largest in history, after the $1.14 billion outflow recorded on February 25. While speaking to The Block, Vincent Liu, CIO of Kronos Research, commented that:
Large outflows signal a risk-off reset, reflecting institutions pulling back amid macro noise. This flow weighs on short-term momentum but doesn’t dent the broader structural demand. These bleed-outs align with oversold conditions, opening doors for long-term opportunists.
With institutional demand in Bitcoin-related products declining, Bitcoin’s price could face a further downward trend.
Bearish tilt for Bitcoin
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The BTC/USD daily chart remains bearish and efficient as Bitcoin has failed to rally in recent weeks.
Bitcoin faced a rejection at the 38.20% Fibonacci retracement level at $106,453 earlier this week and has lost over 7% of its value since then. At press time, Bitcoin is trading at $96,800.
The daily Relative Strength Index (RSI) of 39, below its neutral level of 50, indicating strong bearish momentum.
The Moving Average Convergence Divergence also showed a bearish crossover, indicating that sellers are currently in control.
If the correction continues and the daily candle closes below $97,460, it could decline further towards the key psychological level at $95,000. An extended bearish trend could see BTC retest the $93k low.
On the other hand, if Bitcoin recovers from the recent slump, it could rally towards the
38.20% Fibonacci retracement at $106,453. The $110k level remains a strong near-term resistance point.