Bitcoin Faces Selling Pressure Under $87,000
Bitcoin (BTC) is trading below $87,000 on Wednesday. It is near a key support level around $85,569. If Bitcoin closes below this support, it could lead to a larger price drop. Spot Bitcoin ETFs have seen outflows for two days in a row. Also, wallets linked to Matrixport moved 4,000 BTC to exchanges. These actions signal possible selling pressure. Derivatives traders stay cautious as Bitcoin lacks a clear reason to rise soon.
Institutional Demand Declines, Increasing Downside Risk
- Spot Bitcoin ETFs had $277.09 million in outflows on Tuesday.
- This marks two days of withdrawals this week.
- Outflows might cause further price drops if they grow.
- Matrixport wallets transferred 4,000 BTC (about $347.56 million) to Binance on Wednesday.
- Large Bitcoin transfers to exchanges usually indicate selling intent.
- This can create bearish sentiment as supply may increase.
CME Traders Remain Passive Amid Weak Interest
- A K33 Research report shows CME traders stayed idle last week.
- Bitcoin futures Open Interest is near yearly lows at 124,000 BTC.
- Futures premiums remain low, indicating weak demand.
- Traders avoid adding Bitcoin exposure due to its underperformance versus stocks.
- Leveraged Bitcoin ETFs also saw outflows, with BITX holdings dropping below 35,000 BTC.
- The market shows institution apathy, not panic.
- Bitcoin is consolidating as traders wait for new catalysts.
Bitcoin Price Outlook: Risk of a Deeper Drop
Bitcoin was rejected by a descending trendline in early October. Since then, its price dropped nearly 7%. It retested $85,569 support on Monday and bounced slightly on Tuesday. On Wednesday, BTC trades near $86,700.
If Bitcoin closes below $85,569 daily, it may drop toward $80,000. The Relative Strength Index (RSI) is 39, showing growing bearish momentum. The MACD lines are near a bearish crossover, which could worsen sentiment.
If Bitcoin recovers, it could aim for $94,253, the 61.8% Fibonacci retracement level.
