Bitcoin drops below $90k amid ETF outflows
Bitcoin (BTC) extended its correction on Thursday, falling below the $90,000 level after failing to break through a key resistance zone earlier in the week. Bearish sentiment is gradually strengthening as institutional demand weakens, with spot Bitcoin Exchange‑Traded Funds (ETFs) recording significant outflows. At the same time, on‑chain indicators show rising profit‑taking among holders, suggesting that the largest cryptocurrency by market capitalization may face additional short‑term downside pressure.
Institutional appetite for Bitcoin has softened noticeably this week. Data from SoSoValue reveal that US‑listed spot Bitcoin ETFs saw $486.08 million in outflows on Wednesday, marking the second consecutive day of withdrawals and the largest single‑day outflow since November 20.
If this trend continues or intensifies, BTC could deepen its ongoing correction as liquidity rotates away from risk assets and short‑term sentiment deteriorates.
Key drivers behind the weakening demand include:
Reduced inflows into spot ETFs
A shift toward lower‑risk assets
Increased sensitivity to macroeconomic uncertainty
These factors have collectively limited Bitcoin’s ability to sustain its recent bullish momentum.
Santiment’s Network Realized Profit/Loss (NPL) metric indicates that a growing number of BTC holders are locking in profits. The NPL recorded notable spikes on Monday and Wednesday — the highest levels of realized profit since December 12.
These spikes suggest:
Traders are selling at significant gains
Short‑term holders are reducing exposure
Selling pressure is increasing as BTC struggles near resistance
This behavior typically emerges when markets approach key technical barriers and confidence in further upside begins to fade.
Bitcoin closed above the upper boundary of its consolidation range at $90,000 on Saturday and rallied nearly 4% to retest the 61.8% Fibonacci retracement level at $94,253 (drawn from the April low of $74,508 to the October all‑time high of $126,199). However, BTC failed to break this level on both Monday and Tuesday, triggering a 2.54% decline on Wednesday.
As of Thursday, BTC has slipped below $90,000. A daily close below this level could open the door to a deeper pullback toward the next major support at $85,569.
The RSI on the daily chart is on the verge of dropping below the neutral 50 line → signaling fading bullish momentum
Daily candles show persistent selling pressure
Volume is rising on down‑moves, reinforcing the corrective structure
If RSI remains below 50, BTC may face a sharper correction in the coming sessions.
If Bitcoin manages to stabilize around the $90,000 level, a rebound toward the key resistance at $94,253 remains possible. A decisive break above this zone would be required to revive bullish momentum and open the path toward $98,000.
Bitcoin is currently influenced by three dominant forces:
Significant ETF outflows
Rising profit‑taking among holders
Rejection from the $94,253 resistance
A confirmed close below $90,000 increases the likelihood of a drop toward $85,569. However, holding above this level could support a short‑term recovery.