Bitcoin (BTC) is under pressure again, with institutional demand in BTC weakening. Swissblock has reported that BTC is now entering a high-risk zone as ETF outflows are growing.
On the backdrop of this, the BTC price has dropped to $76k after the U.S.’s latest attack on Iran. Several market indicators are flashing caution signs as BTC struggles to recover above $78,000.
Swissblock’s Risk Index Flashes Warning
Swissblock recently warned that Bitcoin is moving deeper into a high-risk zone. Its proprietary risk index shows growing stress across the crypto market. The firm said momentum is fading quickly. Institutions, even Strategy, have stopped buying Bitcoin.
At the same time, BTC volatility remains high. Because of this, Swissblock reports that Bitcoin is entering a fragile stage that could be marked by sudden price drops. The firm pointed to weakening institutional participation and reduced market confidence.
Analysts also warned that current conditions look very different from the strong rally earlier this year. Back then, ETF inflows supported bullish momentum. Now, the market is seeing the opposite trend. This warning has increased caution among traders and long-term holders.
Glassnode Reports Persistent ETF Outflows
On-chain analytics firm Glassnode has reported a continuous rise in outflows from Bitcoin products. Spot Bitcoin ETFs have recorded several days of heavy withdrawals.
Glassnode noted that institutional demand has weakened sharply compared to previous months. There have been outflows almost daily in the past two weeks. Investors are apparently scaling down their bets as financial markets become more unpredictable.
These outflows matter because ETFs played a major role in Bitcoin’s earlier price rally. Strong inflows helped BTC reach new highs earlier in the year. If the demand drops further, there could be more BTC selling pressure.
Bitcoin Price Drops as U.S. Strikes Iran
The crypto markets faced new pressure this week as a result of geopolitical tensions. Bitcoin’s price fell in anticipation of military strikes on Iranian military targets in the Middle East by the U.S. military. When global risk sentiment declined quickly, investors shifted to safer investments.
Geopolitical uncertainties tend to evoke sharp responses from the crypto markets. Traders are being more cautious, the risk assets such as Bitcoin are getting sold. As the uncertainty set in, Bitcoin’s price quickly went down.
Bitcoin Price Remains Below $78,000
Bitcoin continues struggling below the key $78,000 resistance level. Several rebound attempts failed this week. Sellers quickly regained control each time BTC approached higher levels amidst reports of the U.S. strikes. The Bitcoin value dropped to the $76,500 range, per CoinMarketCap.
For Bitcoin to regain momentum, analysts believe it needs stronger institutional buying. BTC price may continue to move sideways or lower if that doesn’t happen. BTC has support around the mid $75k range, which is critical for short-term price stability.
Technical Indicators Point to BTC Decline
Technical indicators currently suggest bearish pressure remains dominant for Bitcoin. Data from Investing.com shows that most major moving averages continue signaling Strong Sell. The Relative Strength Index remains below neutral levels, showing weak momentum.
MACD indicators also continue flashing sell signals. Short-term and long-term moving averages both point to continued downside risk. Some Bitcoin oscillators are falling into the oversold zone. Bitcoin bulls should buy more to prevent the BTC price from continuing to fall.