BITCOIN SIGNALS BEARISH TREND WITH $607 MILLION ETF OUTFLOWS
Bitcoin’s price has climbed steadily over the past three days, rebounding from a low of $106,340 to around $110,000, as investors took advantage of the dip following the Federal Reserve’s interest rate decision.
Bitcoin Death Cross Signals Potential Steep Decline Ahead
Bitcoin’s price has dropped sharply in recent days, falling from a September high of $126,172 to around $119,340. Technical indicators now suggest that further losses could be on the horizon, as the daily chart shows a classic “death cross”—a bearish pattern that forms when the 50-day and 200-day weighted moving averages intersect.
This crossover often signals that short-term selling pressure is overtaking bullish momentum. Adding to the bearish outlook, Bitcoin has fallen below both the Supertrend indicator and the Major Support/Resistance pivot of the Murrey Math Lines, reinforcing signs of weakness.
Meanwhile, the Average Directional Index (ADX) and True Strength Index (TSI) are both trending lower, suggesting the recent recovery lacks strength. If Bitcoin breaks below key support at $106,342, it could pave the way for a deeper decline—possibly testing the psychological $100,000 level in the near term.
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Bitcoin ETF Withdrawals Rise as Market Reacts to Fed Outlook
Adding to Bitcoin’s bearish momentum, spot Bitcoin ETFs saw heavy outflows last week, losing over $607 million after recording $446 million in inflows the previous week. Despite these withdrawals, total cumulative inflows remain strong at over $61 billion, with combined net assets standing at $147.7 billion—about 6.77% of Bitcoin’s total market capitalization.
The latest outflows came shortly after the Federal Reserve’s interest rate decision, in which the central bank issued its second rate cut of the year but cautioned that another cut in December was not certain. Following the announcement, the probability of a December rate cut plunged from over 90% to 66% on Polymarket.
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Historically, Bitcoin and other cryptocurrencies tend to perform better during rate-cutting cycles, so the Fed’s cautious stance may have prompted investors to pull back from crypto-related assets in the short term.
FAQs
- Why is Bitcoin showing a bearish trend?
Bitcoin is turning bearish because technical indicators, including a “death cross” and a drop below key support levels, suggest that selling pressure is increasing and momentum is weakening.
- What is a death cross in Bitcoin trading?
A death cross happens when the 50-day moving average moves below the 200-day moving average. This is considered a strong bearish signal that often precedes a further price decline.
- How much money flowed out of spot Bitcoin ETFs last week?
Spot Bitcoin ETFs saw outflows of around $607 million last week, showing that investors were pulling funds amid growing uncertainty after the Fed’s decision.
- What recent action did the Federal Reserve take?
The Federal Reserve made its second interest rate cut of the year but cautioned that another cut in December is not guaranteed, which affected investor confidence in crypto markets.
- At what level could Bitcoin find major psychological support?
Analysts believe Bitcoin could find support near the $100,000 level, as a break below $106,342 might lead to further declines toward this psychological mark.
