exchange-traded funds (ETFs) have recorded their ninth consecutive session of net outflows. The 13-fund Bitcoin ETFs in the U.S. have recorded a $228.88 million outflow as institutions have turned to selling BTC.
Alongside, CryptoQuant reports that there is a shortage of new BTC buyers as ETF demand weakens. Against this backdrop, the BTC price has been weakening recently, dropping to around $73,500, roughly 10% below its recent highs.
ETFs Outflows Hit Ninth Consecutive Day
Bitcoin (BTC) closed Thursday, May 28, with an outflow of $228.88 million from the 13 funds. BlackRock’s recorded the biggest outflows, with $177.94 million leaving the funds, per data from SosoValue. It represents the ninth consecutive day of outflow from Bitcoin ETFs.
The nine-day streak has pulled more than $2 billion away from spot Bitcoin products since May 14. The growing outflows are reversing the weeks of BTC accumulation from investors from earlier in the year.
However, in the broader picture, the 13 U.S. spot Bitcoin ETFs still hold a combined $94.25 billion in net assets. This is equal to roughly 6.39% of the total BTC market cap. The cumulative net inflows still remain at $55.79 billion, suggesting that the recent withdrawals haven’t erased earlier institutional accumulation patterns.
Bitcoin is experiencing Buyer Drought
Amidst the outflows, CryptoQuant reports that long-term holder supply may be weakening. The on-chain analytic firm notes that short-term BTC holder supply has dropped by about 2.2 million BTC since December.
Also, more BTC holders are leaving their coins idle, while many whale and institutional dolphin balances (holding 100 – 1,000 BTC) are stagnating or contracting. As a result, 15.8 million BTC is now classified as long-term holder supply, a new record for Bitcoin.
More BTC are getting classified as long-term holders because fewer coins are changing hands. Because of this, CryptoQuant explains that Bitcoin is experiencing a buyer drought. This trend highlights the bearish outlook for Bitcoin.
Bitcoin Price Weakens, Falls To $73,000
Meanwhile, the Bitcoin price has shown a weekly decline in terms of value. CoinMarketCap data points to the BTC price falling from around $82,000 to nearly $73,600 on the one-month chart. This represents a decline of more than 10% from the monthly high of BTC.
The immediate BTC resistance levels sit at $74,280 and $78,135. If the BTC price pushes past these levels, it may reach $80,210 which is its key resistance level. On the other hand, its immediate support levels sit at $72,086 and $70,000. If these fail, the BTC price may fall to $68,000.
Technical Indicators Are Staying Bullish
In addition to the short-term drop, the technical indicators from Investing.com show that BTC is flashing strong sell signals. Investing.com data shows that the 13-day bull/bear power indicator has a value of -5420.0401 which is in the sell zone. In other words, bears are much stronger and are pushing the BTC price under its 13-day average.
Not only that, the 14-day CCI indicator is strongly oversold at -214.7. Both of these indicators combined indicate that the overall bullish momentum that BTC enjoyed on the monthly charts may not be losing its strength.