- Bitcoin ETFs recorded $1.25 billion in weekly net outflows.
- BTC must cross the $78,152 level to maintain the bullish momentum.
- The strategy temporarily halted Bitcoin purchases despite owning 843,738 BTC.
Bitcoin (BTC) continued to trade near the $77,000 level on Monday amid increasing institutional outflows against improving overall sentiment and rising demand from spot buyers.
The world’s largest cryptocurrency rose 0.5% over the past 24 hours, trading at $77,182 at press time, slightly outperforming the broader cryptocurrency market.
The uptick pushed BTC’s price closer to a key resistance area near $78,000, a level that traders are closely monitoring after weeks of price volatility and intense selling pressure from spot exchange-traded funds.
The market is reacting to an easing of geopolitical tensions after US President Donald Trump said a potential deal with Iran was “largely negotiated,” reducing fears of a broader conflict in the Middle East.
Bitcoin ETF outflows continue to weigh on sentiment
Institutional demand for Bitcoin ETFs weakened sharply over the past week, with spot Bitcoin ETFs recording approximately $1.256 billion in net outflows between May 18 and May 22. According to CoinGlass data.
Many of the largest withdrawals came from products associated with BlackRock and Fidelity, two companies that played a major role in driving institutional adoption after launching Bitcoin exchange-traded funds in the US in early 2024.
The outflows have heightened concerns that institutional appetite for exposure to Bitcoin may cool as investors rotate capital towards other sectors, especially artificial intelligence and semiconductor-focused investments.
Meanwhile, Strategy, formerly known as MicroStrategy, halted its aggressive Bitcoin buying campaign this week.
However, the company still owns 843,738 BTC, making it the largest holder of BTC globally, but it chose to buy bonds rather than add more BTC to its treasury.
The move attracted attention across the cryptocurrency market because Chairman and Chief Strategy Officer Michael Saylor has been among the strongest backers of Bitcoin over the past several years.
Meanwhile, BlackRock CEO Larry Fink took a more moderate tone while discussing Bitcoin’s role in institutional portfolios.
Although Fink highlighted the success of Bitcoin ETFs, his recent comments reflected a more cautious stance compared to previous bullish statements.
However, not all institutional activity has turned to the downside. El Salvador has added another eight bitcoins to its national reserves, expanding the country’s long-standing accumulation strategy under President Nayib Bukele.
Bitcoin dominance is rising as traders turn away from altcoins
Even as ETF outflows accelerate, Bitcoin has managed to stay above key support levels as capital continues to shift away from smaller cryptocurrencies and into Bitcoin.
Market data shows that Bitcoin is outperforming many other currencies Alternative currency market During the final recovery period.
Meanwhile, derivatives activity rose sharply, with open interest in perpetual futures rising 11.44% within 24 hours, indicating rising leveraged positions among short-term traders.
This increase in leverage amplified Bitcoin’s move higher but also increased the risk of more severe volatility if macroeconomic data or market sentiment suddenly changed.
Technical indicators point to a critical resistance area
Technical indicators currently present a mixed picture for Bitcoin’s short-term outlook.
Data from 23 technical indicators It shows four buy signals and nine sell signals, leaving the broader short-term trend leaning to the downside despite the recent recovery.
The most important resistance level is located at $78,152. Bitcoin needs a decisive close above this level to maintain the bullish momentum and target the next resistance near $79,331.
On the downside, immediate support stands at $76,773. A breakdown below this level could expose Bitcoin to deeper losses, especially if traders start unwinding their leveraged trades.
The 14-day RSI currently stands at 47.70, indicating neutral conditions rather than an overheated market.
Moving averages also continue to indicate caution.
Bitcoin price is currently trading above just two of the five major EMAs, while remaining below the longer-term 200-day EMA, a level many traders use to assess the broader market trend.
Analysts are also monitoring the 61.8% Fibonacci retracement level near $76,590, which emerged as another important support area during the recent consolidation phase.
