Important requirements
- BTC drops lower for the fourth straight day on Monday after losing nearly 6% over the past week.
- ETFs that are part of the US BTC spot ETF have a weekly inflow of $1 billion, which is the highest in three months.
Bitcoin (BTC) remained under pressure on Monday, trading below $77,000 after falling nearly 6% last week, as persistent ETF outflows and stronger-than-expected US inflation data cooled investor appetite for economic risk.
The recent drop marks Bitcoin’s fourth consecutive day of losses, with the cryptocurrency continuing to pull back after failing to continue above the key $82,000 resistance zone.
Hot US inflation data boosts Fed’s hawkish expectations
Bitcoin’s recent weakness came on the back of a drop in US interest rates released last week, along with strong US economic data that bolstered expectations of a hawkish Federal Reserve.
Concerns about a rebound in inflation strengthened the US dollar and pushed up Treasury yields, putting additional pressure on risk-free assets such as cryptocurrencies.
Expectations of higher interest rates often reduce market capitalization and shift investment into safer, higher-yielding assets, reducing the value of speculative markets like Bitcoin.
A rejection near the $82,000 level triggered additional profit from short-term holders, extending the correction.
Institutional demand for Bitcoin also slowed down especially last week. According to data from CoinGlassUS Bitcoin exchange-traded funds recorded a net outflow of nearly $1 billion last week, the largest weekly withdrawal since the end of January.
The ETF’s big move reflects a cooling of sentiment after weeks of strong inflows that were supportive of Bitcoin’s rally.
If the outflow of ETFs continues in the coming sessions, analysts warn that Bitcoin may face further challenges.
Bitcoin price outlook: Bulls have failed to take a major rejection step
The BTC/USD 4-hour chart is bearish after the price of Bitcoin was rejected near the 100-week Exponential Moving Average (EMA) at about $82,289.
BTC also closed last week below the 61.8% Fibonacci retracement level near $78,490, measured from the October all-time high of $126,199 to the February low of around $60,000.
The bottom line of high tech standards has changed dramatically. If the selling pressure continues, Bitcoin could extend the losses to a major level of emotional support at $75,000.
On the weekly chart, the momentum indicators are still mixed but very cautious. The Relative Strength Index (RSI) dropped below the 50 level and is currently near 35, indicating strong bearish momentum.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is also in negative territory, which means that the bears are in control.
If the trend continues, immediate support lies near the 50-day and 100-day EMAs below current prices.
Other downside targets include the 38.2% Fibonacci retracement near $74,487, followed by the previous move at $70,576.
Below, the 23.6% Fibonacci retracement near $68,950 is still a difficult level to protect Bitcoin’s broad bullish structure above $60,000 to swim low.
However, if the bulls regain control, the first resistance appears near the 50% Fibonacci retracement around $78,962, followed by the 200-day EMA around $81,853.
A continuation of the strong momentum would require a daily close above the 61.8% Fibonacci retracement near $83,437 and a horizontal resistance barrier around $84,410.
