Bitcoin (BTC) has dropped below $84,500 on Wednesday, marking a 2.5% decline so far this week. The recent price movement reflects cautious institutional demand, as highlighted by mixed flows in spot Bitcoin Exchange Traded Funds (ETFs). After weeks of heavy inflows, BTC ETFs saw an inflow of $118.86 million on Tuesday, following a minor outflow of $89.90 million the day before. These fluctuations indicate a hesitant stance among institutional investors amid rising US Treasury yields and a stronger US Dollar (USD).
The crypto market also faced a sharp pullback mid-week, with Bitcoin losing nearly $2,000 in just 20 minutes. This downturn was accompanied by $400 million in liquidations of leveraged long positions within an hour, according to The Kobeissi Letter. Data from CoinGlass reveals that 101,831 traders were liquidated over the past 24 hours, totaling $550.65 million. Notably, 90.54% of these positions were long, signaling excessive bullish sentiment and potential vulnerabilities for further declines.
Technically, Bitcoin is trading at $84,335, experiencing three consecutive days of correction. The cryptocurrency failed to surpass recent highs around $87,000 and slipped below the key $85,000 support level. Despite the pullback, Bitcoin remains broadly bullish, holding above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which are clustered between roughly $79,600 and $75,300. The Relative Strength Index (14) has cooled to 57, suggesting a normalization from prior overbought levels, while the Moving Average Convergence Divergence (MACD) has slipped below zero, indicating waning upside momentum.
On the upside, immediate resistance is located at the $85,000 horizontal barrier, where a clear daily close above could reopen the path toward the recent highs around $87,000. On the downside, initial demand is seen at the 50-day EMA near $79,612, followed by the 100-day EMA at $75,738 and the 200-day EMA at $75,361. Deeper pullbacks could expose previous horizontal floors at $66,500 and $62,300.