Bitcoin Price Falls Below $90,000 Amid Continued Correction
Bitcoin (BTC) price dropped below $90,000 on Tuesday. This deepens the ongoing correction after last week’s sharp fall. Institutional demand is weakening. US-listed spot Bitcoin Exchange Traded Funds (ETFs) saw $254.54 million in outflows on Monday. This adds to a steady wave of withdrawals. On-chain data also points to more selling pressure.
ETF Flows Indicate Weak Institutional Demand
Institutional demand for Bitcoin ETFs remains weak. Data from SoSoValue shows a $254.51 million outflow on Monday. This is the fourth straight day of outflows since November 12. In total, ETFs have seen $1.11 billion in outflows since last week. If this trend continues, Bitcoin’s price could fall further. This suggests less confidence from institutional investors.
On-Chain Data Shows Increased Selling Pressure
On-chain indicators point to more downside for Bitcoin. The average BTC deposit volume rose above 0.9 on Tuesday. Higher deposits usually mean more selling. Binance exchange reserves surpassed 580,000 BTC. When reserves climb, it often signals more Bitcoin being sold. This matches the ETF outflows and adds to bearish pressure.
- Net exchange flows hit 5,000 BTC on Monday
- This was the strongest sell pressure day since mid-August
Bitcoin Price Could Drop to $85,000 Support Level
Bitcoin faced strong resistance at $106,453 last week. It then fell about 10%. On Monday, BTC closed below key support at $94,253. On Tuesday, it fell further below $90,000. If the drop continues, the next support level is around $85,000.
The Relative Strength Index (RSI) is at 26. This shows strong bearish momentum and oversold conditions. However, if Bitcoin recovers, it may rise back to $94,253, the 61.8% Fibonacci retracement level.
