Bitcoin (CRYPTO: BTC) ETFs posted $635.2 million in outflows Wednesday, but Thursday price action could nullify analysts’s warnings about a drop to $70,000.
Biggest Daily Outflow Since Late January
The fresh outflows mark the largest daily Bitcoin ETF withdrawal since January 29, when the funds posted about $818 million in losses.
Weekly outflows now stand at $841.2 million, putting ETFs on track for their first week of net losses after six consecutive weeks of gains totaling around $3.4 billion.
BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) led losses with roughly $285 million in outflows.
ARK 21Shares Bitcoin ETF (BATS:ARKB) and Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) followed with $177 million and $133.2 million respectively.
Additionally, Morgan Stanley’s Bitcoin Trust ETF (NASDAQ:MSBT) posted no outflows Wednesday and has not seen any outflows since its April 8 launch. The fund has accumulated roughly $256 million to date.
On-Chain Points To $70,000 Support
CryptoQuant analysts pointed to rising profit-taking, elevated unrealized gains, and weakening U.S. spot demand as signs that momentum may be fading.
Bitcoin tested the 200-day moving average near $82,400 after a 37% rally from April lows, a level that has historically acted as resistance in prior bear-market rebounds.
On-chain data suggests potential support near $70,000 if a deeper correction develops.
Moreover, CryptoQuant explained this level has historically acted as a key resistance-turned-support band during bear markets, representing the average cost basis of short-term traders.
“This level represents the average cost basis of short-term traders and the level at which unrealized profit margins compress back toward zero, reducing the incentive for further selling,” the report stated.
Capital Inflows Still Lag Bull Market Levels
The Realized Cap 30-Day Net Position Change has recovered to $2.8 billion per month, signaling improving capital inflows.
However, this still trails the $10 billion-plus levels seen during prior bull market expansions.
Glassnode analysts noted that at the early stages of every major rally during the 2023 to 2025 bull market, this metric accelerated rapidly from around $2 billion toward $10 billion per month. The current reading, while encouraging, remains significantly below that threshold.
Bitcoin Reclaims $80K But Faces Resistance
Bitcoin recovered to $80,000 Thursday, reclaiming the psychological level after dipping to $78,885.
Price is riding the Keltner Channel midline at $79,150, which has acted as dynamic support throughout the April-May recovery.
The upper band at $82,977 is the immediate ceiling. Lower band at $75,324 remains the worst-case support.
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