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- Bitcoin has dropped below $80,000 after being rejected by the key 200-day EMA area.
- US-listed ETFs recorded outflows of $635 million on Wednesday.
Bitcoin (BTC) fell below $80,000 on Thursday after failing to break through key levels earlier this week.
The pullback comes as a result of the decrease in institutions, and the location of Exchange Traded Funds (ETFs) is experiencing a lot of outflows, as well as the increase of traders’ doing profit taking, increasing selling pressure on leading cryptocurrency.
The ETF’s highest one-day high in three months indicates weakness in stocks
Institutional demand for Bitcoin has slowed, with ETFs reporting the largest outflow of $635.23 million on Wednesday, the largest single-day withdrawal since late January.
According to CoinGlass data, this marks the second consecutive day of withdrawals this week. If outflows continue or intensify, Bitcoin price corrections may continue, increasing bearish pressure.
Profit-taking among Bitcoin holders has skyrocketed, adding to the selling pressure. The weekly report of CryptoQuant shows that 14,600 BTC was identified as a daily profit on May 4, the highest figure since December 10.
The 37% rally since April’s lows has brought Bitcoin holders back into profitable territory, sparking a massive selloff. This kind of behavior leads to further price declines, as traders get their earnings.
Bitcoin price prediction: BTC may fall below $79,000
Bitcoin is trading at $79,458 on Thursday, after facing rejection from the supply chain.
The cryptocurrency has corrected for three consecutive days this week but is still holding above the 50-day and 100-day Exponential Moving Averages (EMAs), which gather below $76,800.
Despite this, Bitcoin remains below the 200-day EMA at $81,986 and the key 61.8% Fibonacci retracement at $83,437.
While the overall development remains unchanged, the technology landscape is showing a cautious approach. The Relative Strength Index (RSI) hovers in the mid-50s, indicating a slight bias, but the Moving Average Convergence Divergence (MACD) line is still in negative territory, pointing to the upside.
If the trend continues, immediate support is found at the 50% Fibonacci retracement level around $78,962, followed by the 100-day EMA at $76,756 and the 50-day EMA at $76,479.
If the sale accelerates, further support lies at the 38.2% Fibonacci retracement near $74,487 and the broken up trendline at about $70,171.
On the upside, bulls need to clear the 200-day EMA at $81,986 to ease the short-term pressure. Resistance then emerges at the 61.8% Fibonacci retracement at $83,437 and the horizontal resistance near $84,410.
A daily close above this level would strengthen the case for another push to the January high of $97,924.
