Key Insights
- •Bitcoin price has lost 7% over the week, sparking concerns of a continuing dip ahead.
- •Bitcoin ETF recorded an outflow of over $1 billion this week, led by BlackRock.
- •Analyst hints at a potential Bitcoin USD drop to $70k, if a key support fails.
The recent dip in Bitcoin price today to $94,000 has sparked discussions among traders about whether the flagship crypto has already touched its cycle top.
The market concerns were further amplified as the crypto has struggled to hold above the $100,000 mark over the past few days.
On the other hand, the latest market trends also suggest a waning risk-bet appetite of the retail traders as well as the institutions. For context, the US Spot Bitcoin ETF has continued to witness massive outflows, signaling a shifting focus of traders.
Amid this, a renowned analyst warned of a BTC price pullback to as low as $70,000 or even lower, citing technical trends.
Besides, the expert has also highlighted the historical performance of Bitcoin USD, which further suggests that the crypto might have already reached its cycle peak.
So, here we explore the potential reasons behind the recent drop in BTC price and where the crypto might be heading in the near future.
Top Reasons Why Bitcoin Price Today Slips
Bitcoin price today retreated more than 1% but held above the brief $95,000 support, after falling to as low as $94,000 in the last 24 hours.
Notably, the price of BTC has marked its daily high of $97,490, indicating the high selling pressure in the market.
It seems that the primary cause of the retreat was due to the broader crypto market downturn. In addition, the latest $5 billion in Bitcoin USD and Ethereum options expiry has further weighed on the traders’ sentiment, while escalating the volatile scenario in the market.
Notably, the latest dip to $94k also marks the lowest level in months, which reflects the high selling pressure in the market.
At its current price, BTC has lost nearly 7% over the week, while witnessing a plunge of around 14% in the monthly chart.
US Selling Bitcoin USD as ETF Momentum Fades
Another major reason behind the recent selloff could be waning institutional interest, as evidenced by the latest US Spot Bitcoin ETF fund flow data.
According to Farside Investors’ data, the Bitcoin ETF has ended the week with an outflow of $492.1 million.
Notably, the investment instrument has marked its three-day outflow streak through Friday, with $866.7 million outflow recorded on Thursday.
The combined outflow this week totaled $1.11 billion, led by BlackRock’s $532.4 million outflow.
On the other hand, it seems that the US traders are aggressively selling their Bitcoin USD holdings, which might have further worsened the condition.
According to CoinGlass data, the Coinbase Bitcoin Premium Index was at -0.07%, highlighting the selling pressure in the US.
Commenting on the current scenario, analyst Ted said that BTC dip from $126k to $100k was caused by Asian traders.
On the other hand, the dip in Bitcoin price today below $100k was triggered by the US institutions selling.
He noted that “the US has now become the biggest seller of Bitcoin.”
Bitcoin Price Already Topped?
As Bitcoin price today continues to stay in the red, analyst Ted has hinted at a further dip in the asset. In a recent X post, the expert warned of a possible Bitcoin USD drop to $90,000.
His analysis suggests that the $90,000-$92,000 zone could be a liquidity cluster where Bitcoin forms a local bottom.
Having said that, failure to hold above $98,000 could trigger cascading liquidations, pushing the price lower.
Meanwhile, analyst Ali Martinez has cited the historical performance of BTC price and said that it might have already reached its cycle peak. He said that since 2015, Bitcoin USD bull market has lasted 1,064 days.
Now, he noted that Bitcoin price has touched an all-time high of $126,000 exactly after 1,064 days in October, after the November 2022 bottom at $15,500.
Considering that, he said that Bitcoin USD might have already touched its peak this cycle. In a separate post, he noted that the next support below $95,930 lies at $82,045.
However, if the support at $80k fails, the next support for Bitcoin price could be at $66,900, hinting at a potential crash below the $70k mark.