Crypto market enters cautious phase
Bitcoin (BTC) continues to trade in negative territory around $86,700 on Wednesday, after failing to break above the psychological resistance at $90,000 earlier this week. A combination of persistent outflows from spot Bitcoin ETFs and reduced participation from whales, sharks, and dolphins has created a cautious market tone, weakening BTC’s short-term outlook.
According to SoSoValue data, spot Bitcoin ETFs recorded $188.64 million in outflows on Tuesday — marking the fourth consecutive day of withdrawals since December 18. This trend reflects waning institutional demand, and if it continues, it could exert further downward pressure on Bitcoin’s price.
Santiment data shows that the number of wallets holding at least 1 BTC dropped from 999,320 on March 3 to 974,380 on Monday — a 2.2% decline. This reduction in large-holder activity signals diminished market confidence and raises the likelihood of continued price correction.
Bitcoin retested the $90,000 psychological level on Monday but failed to hold above it. As of Wednesday, BTC trades near $86,700, and if the correction continues, it could extend toward the key support level at $85,569.
The Relative Strength Index (RSI) stands at 41, below the neutral level of 50, indicating growing bearish momentum.
The Moving Average Convergence Divergence (MACD) showed a bullish crossover last week, but fading green histogram bars suggest weakening buying pressure.
If BTC closes above the $90,000 level, it could initiate a recovery toward the next resistance at $94,253. However, this scenario would require renewed institutional confidence and increased participation from large holders.
Overall, Bitcoin faces year-end selling pressure driven by ETF outflows and declining whale activity. Unless BTC reclaims and holds above $90,000, its short-term outlook remains cautious