Bitcoin Faces Growing Downside Risks as Crypto Funds See Outflows
ETH remains firmly above its $2,600 support level. Technical indicators now suggest a potential move toward the $3,000 mark.
Quick overview
- Bitcoin is experiencing downward consolidation, intensifying bearish risks amid global economic tensions.
- The cryptocurrency retreated to $105,204, indicating waning technical momentum and weakening investor sentiment.
- Spot Bitcoin ETFs saw a net outflow of $268 million, raising concerns about a potential deeper corrective phase.
- In contrast, Ethereum shows stronger technical resilience with $78 million in net inflows and remains above its $2,600 support level.
Amid a backdrop of global economic tensions and heightened market volatility, Bitcoin (BTC) is consolidating to the downside, intensifying bearish risks for the world’s leading cryptocurrency.
After attempting to sustain a rebound above $106,000, Bitcoin retreated to $105,204 at the time of writing, according to Binance data—highlighting waning technical momentum and weakening investor sentiment.
The market’s softening is also evident in the flows of spot Bitcoin ETFs, which saw a net outflow of $268 million on Monday, marking the third consecutive day of withdrawals. This sharp reversal comes after a 10-day streak of net inflows and has raised concerns among traders about the potential onset of a deeper corrective phase.
In contrast, Ethereum (ETH) continues to demonstrate stronger technical resilience and investor confidence. Spot ETFs for the leading smart contract platform recorded $78 million in net inflows on Monday, and ETH remains firmly above its $2,600 support level. Technical indicators now suggest a potential move toward the $3,000 mark.
Market Analysis: Bitcoin Under Technical Pressure
Bitcoin’s technical landscape is dominated by bearish signals. The MACD has been flashing a sell signal since May 25, while the 50-, 100-, and 200-day exponential moving averages could serve as key support levels in the $91,000–$105,000 range.
Several factors are contributing to the downward pressure and volatility. Chief among them is uncertainty surrounding global trade policy, particularly tariff-related tensions between the U.S. and its key partners. Additionally, profit-taking near recent all-time highs around $112,000 has added to the correction.
Many analysts view this pullback as a healthy development within a broader price discovery phase—marked by a mix of profit-taking and investor caution in response to an uncertain global economic environment.
The crypto market remains in a holding pattern, with participants watching closely to see whether Ethereum’s strength can help restore broader sentiment, or if Bitcoin will continue to face headwinds amid a climate of economic and geopolitical risk.
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