- Bitcoin ETFs posted $1.25 billion in weekly net outflows.
- BTC needs to clear $78,152 to maintain momentum.
- Strategy stopped buying Bitcoin even after holding 843,738 BTC.
Bitcoin (BTC) continued to trade near the $77,000 level on Monday amid a surge in institutional activity against strong growth and rising consumer demand.
The world’s largest cryptocurrency rose 0.5% over the past 24 hours, trading at $77,182 at press time, slightly beating the major crypto market.
A slight reversal pushed the price of BTC closer to a major resistance point near $78,000, a level that traders are keeping an eye on after weeks of price volatility and heavy selling of trading funds.
The market is reacting to easing political tensions after US President Donald Trump said a potential deal with Iran was “highly negotiated,” easing concerns about a major conflict in the Middle East.
The exit of the Bitcoin ETF continues to force opinions
Institutional demand for Bitcoin ETFs fell sharply last week, with Bitcoin ETFs recording roughly $1.256 billion in outflows between May 18 and May 22. according to CoinGlass data.
Most of the major withdrawals came from assets linked to BlackRock and Fidelity, two companies that played a major role in driving the launch of Bitcoin ETFs that were launched in the United States in early 2024.
The exit raises concerns that institutions’ appetite for exposure to BTC may diminish as investors shift their investments to other sectors, particularly artificial intelligence and semiconductor investments.
Meanwhile, Strategy, formerly known as MicroStrategy, has halted its aggressive Bitcoin buying campaign this week.
However, the company still has 843,738 BTC, making it the largest Bitcoin company in the world, but it chose to buy bonds instead of adding Bitcoin to its portfolio.
The move drew attention from the crypto market as Strategy and its executive chairman Michael Saylor have been among Bitcoin’s strongest supporters over the past few years.
Meanwhile, BlackRock CEO Larry Fink took a more measured tone when discussing the use of Bitcoin in financial institutions.
Although Fink has highlighted the success of Bitcoin ETFs, his latest comments show more caution compared to what has been said in the past.
However, not all organizational functions have changed. El Salvador added another eight Bitcoin to its national reserves, extending the long path of national accumulation under President Nayib Bukele.
Bitcoin dominance rises as traders switch to altcoins
While ETF outflows are increasing, Bitcoin has managed to perform above major supports as capital continues to shift from smaller cryptocurrencies to BTC.
Market data shows Bitcoin is doing very well altcoin market on recent recovery.
At the same time, derivatives activity has increased significantly, with open interest in perpetual futures contracts jumping 11.44% within 24 hours, indicating a strong rise among short-term traders.
This increase increased the volatility of Bitcoin and made the risk of financial instability less volatile if economic volume or market sentiment suddenly changed.
Technical indicators point to a critical area
Technical indicators are currently showing a mixed picture of Bitcoin’s short-term outlook.
Data from 23 skill indicators it shows four buy signals and nine sell signals, leaving a long-term downward trend even though it has recently reversed.
The most important resistance level is $78,152. Bitcoin needs to get very close above that level to continue its rise and look for the next resistance near $79,331.
On the lower side, emergency assistance stands at $76,773. A drop below this level could cause Bitcoin to experience significant losses, especially if traders begin to unwind their holdings.
The 14-day Relative Strength Index is currently at 47.70, indicating a neutral rather than an overheated market.
The average move also continues to warn.
Bitcoin price is currently trading above only two of the five major moving averages, while it is just short of the 200-day EMA, a level that many traders use to assess market trends.
Analysts are also looking at the 61.8% Fibonacci retracement level near $76,590, which has emerged as another important support point during the recent consolidation.
