Bitcoin's slide continued on Friday as the cryptocurrency broke below the $70,000 mark, extending its weekly decline to 9%. The persistent selling pressure has raised concerns that the asset could be heading toward its sixth consecutive weekly loss, a streak not seen in recent months.
Over the past seven days, Bitcoin has shed more than 9% of its value, bringing its cumulative losses over the last six weeks to approximately 20%. This sustained downturn reflects a broader deterioration in market sentiment, driven by a combination of weak institutional demand, uncertainty surrounding US monetary policy, and declining technology stock valuations.
ETF Outflows and Macro Headwinds
Institutional interest has been a key concern, with US spot Bitcoin exchange-traded funds (ETFs) recording six consecutive trading days of net withdrawals. On Thursday alone, these funds saw an outflow of $47.61 million, following a $300 million exodus the previous day. Persistent ETF redemptions can amplify selling pressure, as these products serve as a primary channel for traditional investors to gain exposure to Bitcoin.
The outflows coincide with renewed uncertainty about US inflation and the Federal Reserve's interest rate trajectory. Expectations of tighter monetary policy tend to discourage investment in risk-sensitive assets, particularly when investors anticipate higher borrowing costs and reduced liquidity in financial markets.
Bitcoin has also shown sensitivity to developments in the technology sector, especially shares tied to artificial intelligence. Nvidia confirmed on Thursday that Jensen Huang resigned as president, chief executive officer, and board member, effective immediately. The company appointed CFO Colette Kress as interim CEO while a permanent replacement is sought. The departure followed reports concerning personal relationships and national security allegations, though Nvidia stated its internal investigation found no evidence of compromised company secrets or national security.
Technical Outlook: Key Levels to Watch
From a technical perspective, Bitcoin's daily chart remains bearish following the breakdown below $70,000. The 50-day Exponential Moving Average (EMA) sits at $78,272, while the 200-day EMA is at $76,898, both trending downward. The 50-day EMA is approaching a potential bearish crossover below the 200-day EMA, a pattern commonly referred to as a death cross.
Momentum indicators reinforce the bearish stance. The daily Relative Strength Index (RSI) has fallen to approximately 25, placing Bitcoin firmly in oversold territory. Meanwhile, the Moving Average Convergence Divergence (MACD) remains negative, indicating that bearish momentum continues to dominate.
The immediate technical level to monitor is $70,505, which previously acted as support. With Bitcoin now trading below this area, a sustained breakdown could expose the cryptocurrency to the next significant downside target at $67,292. If selling pressure intensifies and buyers fail to defend that level, BTC could extend its correction toward $62,345.
Potential for a Bounce
Despite the bearish outlook, Bitcoin's deeply oversold RSI suggests that a temporary recovery remains possible. However, buyers face several important resistance levels before they can establish a convincing reversal. The first significant barrier is $70,505, which Bitcoin would need to reclaim to ease the immediate selling pressure. Beyond this level, the next major resistance stands at $75,545.
A sustained recovery above $75,545 could encourage buyers to target the 200-day EMA around $76,898. The 50-day EMA at $78,272 represents another substantial barrier, potentially limiting any recovery attempt. Reclaiming these moving averages would improve Bitcoin's technical structure and provide stronger evidence that buying momentum is returning.
This article is for informational purposes only and does not constitute financial advice.
