Bitcoin has slipped into a correction phase after falling nearly 14% from its yearly peak. Experts caution that the decline may deepen as a bearish chart pattern forms and bitcoin ETF (exchange-traded fund) outflows continue to rise.
Investors Retreat Amid Growing Market Fear
Investor confidence in Bitcoin took a sharp hit this week. Following a major wave of crypto liquidations, many U.S. investors reduced their holdings as the Crypto Fear and Greed Index fell into the fear zone.
Data from SoSoValue indicates that spot Bitcoin ETFs saw over $1.2 billion in outflows this week alone.
Among the biggest withdrawals, BlackRock’s IBIT lost around $268 million, while Fidelity’s FBTC also posted significant declines. These outflows marked a sharp reversal from the prior two weeks, during which Bitcoin ETFs collectively gained almost $6 billion in new investments.
In total, cumulative inflows since their introduction in January last year now stand at $61.54 billion, signaling a clear shift in investor sentiment.
Mass Liquidations and Safe-Haven Demand Weigh on Bitcoin
Late last week, Bitcoin suffered more than $4.6 billion in liquidations, leading to a steep drop across the cryptocurrency market. After such large sell-offs, traders often move to cash positions or wait for stability before reentering.
At the same time, gold—a traditional safe-haven asset—has attracted renewed interest as global risks rise. Growing trade tensions between the U.S. and China, along with persistent inflation worries, could slow down the Federal Reserve’s pace of interest rate cuts, putting additional pressure on Bitcoin and other risk assets.
Concerns are also mounting at home, with fears of a potential U.S. government shutdown and credit risks following fraud-related losses reported by several regional banks. Together, these factors have created a cautious tone in the broader market.
Bitcoin Technical Outlook: Signs of Weakness Appear
On the technical chart, Bitcoin remains under pressure after its recent 14% correction. The daily chart shows BTC trading below its 50-day moving average, while the Supertrend indicator has turned bearish (red).
More notably, Bitcoin has developed a double-top pattern near the $124,355 level — a common bearish formation that signals possible further declines. Based on technical targets, the next support could be around $92,345, marking the lowest level since April.
However, if Bitcoin breaks above $113,000, the bearish setup could be invalidated, potentially signaling the start of a short-term rebound.
Conclusion
The ongoing Bitcoin correction reflects heightened caution among investors after heavy ETF outflows and widespread market liquidations. With uncertainty surrounding global trade, inflation, and U.S. credit stability, traders remain watchful of key price levels. Until confidence improves, Bitcoin is likely to experience continued volatility in the near term.
