Crypto Quill

Bitcoin’s latest price action is sending shockwaves through the crypto market, as it drops nearly 10% in a single day. With massive liquidations totaling $1.47 billion and spot ETFs witnessing heavy outflows, investors are now bracing for what could be a crucial test of support. The big question—will Bitcoin hold its ground or slide further towards $75,000?

Bitcoin Slides Below Key Moving Averages

Bitcoin’s price took a sharp dip, marking a 24-hour low of $86,314. This drop has now placed BTC dangerously close to its 200-day Exponential Moving Average (EMA)—a level traders closely watch for signs of long-term trend shifts.

On the daily chart, the downtrend has already breached the 50-day and 100-day EMAs, signaling increasing bearish pressure. What’s concerning is the formation of two consecutive bearish engulfing candles—historically a sign of further downside potential.

• The 50-day and 20-day EMA have formed a bearish crossover, amplifying downward momentum.
• The MACD indicator remains in negative territory, with red histograms growing stronger—indicating sellers are still in control.
• Bitcoin is now trading at levels last seen in November 2024, further erasing gains from its early-year rally.

One small glimmer of hope? A slight rejection of lower prices in the intraday candle suggests some buyers are stepping in, but it remains to be seen if they can hold off further losses.

Bitcoin ETF Outflows Add Fuel to the Fire

A major factor behind the ongoing Bitcoin plunge appears to be massive institutional sell-offs in the Bitcoin Spot ETF market. Over the past 24 hours, U.S. Bitcoin ETFs saw a net outflow of $516.41 million, adding to bearish pressure.

Leading the charge in outflows:

ETF Provider	Outflow Amount (USD)
Fidelity	$246.96 million
BlackRock	$158.59 million
Grayscale	$60 million
ARK & 21Shares	Pending Update

As ETF providers dump Bitcoin holdings, the ripple effect is being felt across the entire market. Retail investors, already nervous from previous corrections, now find themselves caught in a wave of uncertainty.

Adding to the concern—on-chain data suggests 12% of all Bitcoin addresses are now holding at a loss. This is the highest unrealized loss percentage since October 2024, meaning panic selling could intensify if prices continue to slide.

Is Bitcoin Headed for $75K?

The next few trading sessions will be crucial. Right now, Bitcoin is hovering near the 200-day EMA, a level that often acts as a make-or-break point for price trends.

A bullish scenario would see buyers stepping in strongly at these levels, pushing BTC back above $90,000. This would indicate a possible rebound and could slow the current sell-off.

A bearish scenario would unfold if Bitcoin closes below the 200-day EMA. If that happens:

• The next major support zone sits near $75,000—a level where buyers may attempt to defend the market.
• If $75K fails, Bitcoin could see even deeper corrections, potentially revisiting mid-$60K levels.

For now, it’s a battle between institutional outflows and dip buyers. Will Bitcoin bulls stage a comeback, or is more downside on the way? The answer could shape the market for weeks to come.