Key Takeaways:
Bitcoin (BTC) slipped below $79,000 on Thursday, extending its correction after failing to break a key resistance level earlier in the week. The price was trading around $79,458 during Asian hours, down 2.3% over 24 hours, as institutional demand wavered and traders took profits.
The move lower was accelerated by the largest single-day withdrawal from US-listed spot Bitcoin exchange-traded funds (ETFs) in three months. "Institutional demand for Bitcoin has weakened, with spot ETFs recording a massive outflow of $635.23 million on Wednesday," data from CoinGlass shows. This marked the second straight day of net outflows, increasing selling pressure on the market.
The rejection occurred at the 200-day moving average, a technical indicator sitting around $82,000 that has historically acted as significant resistance. According to analysis from CryptoQuant, the setup mirrors the price action from March 2022, where a rally stalled at the same moving average before a deeper downturn. On-chain data shows that daily realized profits surged to 14,600 BTC on May 4, the highest figure since December 2025, suggesting short-term holders are selling to lock in gains from the recent 37% rally.
This profit-taking comes as other metrics signal the rally lacked strong conviction. Market maker Wintermute noted the push toward $83,000 was driven by a surge in derivatives open interest, not by spot buying, which it called "the opposite of a healthy bull move." Furthermore, Glassnode data shows that while capital inflows recovered to $2.8 billion per month, this remains well below the $10 billion-plus monthly inflows seen during major rallies in the 2023-2025 bull market.
Should the bearish trend persist, immediate support for Bitcoin is located at the 50% Fibonacci retracement level around $78,962. Further selling could push the price toward a cluster of support at the 100-day and 50-day exponential moving averages, located near $76,756 and $76,479, respectively. To reverse the downward pressure, bulls must reclaim the 200-day EMA around $81,986.
This article is for informational purposes only and does not constitute investment advice.
