Key takeaways
- BTC dipped below $90k a few hours ago but has since bounced back and is trading above $91k.
- The leading cryptocurrency could slide toward $85k if selling pressure continues.
The cryptocurrency market continued its downward trend in November as Bitcoin lost 5% of its value over the past 24 hours and briefly fell below $90k. It has recovered slightly and is now trading above $91k per coin.
Falling institutional demand and outflows weigh on BTC
The decline comes amid weakening institutional demand. US-listed spot Bitcoin Exchange Traded Funds (ETFs) recorded $254.54 million in outflows on Monday, extending a streak of withdrawals.
According to SoSoValue, more than $1.1 billion has been withdrawn from US spot Bitcoin ETFs over the past seven days. If outflows persist and accelerate, Bitcoin’s price could see further losses in the near term.
On-chain data for Bitcoin also indicates that BTC has not yet found a bottom and may suffer additional declines soon. Recent metrics show the Average BTC Deposit Volume surpassed 0.9 on Tuesday, signaling increased selling pressure.
Historically, when the average deposit volume on Binance rises, Bitcoin faces significant selling pressure. Additionally, Binance’s exchange reserves have exceeded 580,000 BTC. This suggests mounting selling pressure while market demand remains weak.
BTC could retest $85k support
The BTC/USD 4-hour chart is bearish and showing inefficiency as Bitcoin has underperformed in recent days. The coin was rejected at the 38.20% Fibonacci retracement level around $106,453 since last Monday and has fallen more than 10% since then.
If the corrective decline continues, Bitcoin could drop toward the next psychological support level at $85k. The 4-hour Relative Strength Index (RSI) sits at 34, reinforcing the downward momentum. The MACD indicator also signals that BTC remains in oversold territory.
However, if BTC mounts a recovery, it could extend gains toward resistance near $94,253.