Bitcoin continues to face selling pressure, slipping below the $77,000 mark on Tuesday as institutional demand weakens and the market digests the fallout from Binance's reported $6.3 billion security breach. The leading cryptocurrency is trading around $76,585, marking its fourth consecutive weekly decline.
Spot Bitcoin exchange-traded funds (ETFs) recorded approximately $398.26 million in net outflows on Monday, according to SoSoValue. This follows a broader trend of reduced institutional appetite, with October ending at $515.03 million in net outflows—breaking a three-month streak of positive monthly inflows. The final week of October alone saw about $202.59 million withdrawn from US spot Bitcoin ETFs.
The persistent outflows suggest that institutional investors are increasingly cautious about accumulating Bitcoin amid heightened market uncertainty. Unless institutional demand improves, Bitcoin may struggle to establish a sustainable recovery, particularly as the market continues to absorb the implications of the Binance security incident.
Binance breach adds to market jitters
On October 29, Binance, the world's largest centralized cryptocurrency exchange, suffered a reported $6.3 billion security breach targeting assets across ten blockchain networks. The exchange reassured customers that their holdings would be protected, planning to cover losses through its Secure Asset Fund for Users (SAFU) and corporate reserves. Binance temporarily restricted withdrawals for additional security checks.
After operations resumed, customers withdrew approximately $5.14 billion within 24 hours—about 3% of the platform's assets. Binance reported that activity began to stabilize after the initial surge, with customer deposits remaining significant. For Bitcoin, the combination of weakened institutional demand and uncertainty over the stolen assets has created an unfavorable environment for a sustained rebound.
Technical outlook: $75,597 as critical support
Bitcoin's weekly chart shows a cautious picture after four consecutive weeks of losses. The cryptocurrency declined roughly 2.25% last week and extended its weakness into Tuesday's session. The next significant downside target sits around $75,597, corresponding to the 50-week Simple Moving Average (SMA). A sustained breakdown below this level, especially on a weekly closing basis, could accelerate bearish momentum and expose the 200-week SMA near $67,776.
Momentum indicators reflect weakening buyer strength. The weekly Relative Strength Index (RSI) stands around 49, slightly below the neutral threshold of 50, indicating that the previous bullish advantage has faded. The Moving Average Convergence Divergence (MACD) histogram remains positive but its declining bars suggest upward momentum is losing steam. Together, these indicators point to a market experiencing weakening buying pressure rather than a confirmed long-term bearish reversal.
On the upside, Bitcoin must first reclaim the 61.8% Fibonacci retracement level around $78,661. A sustained recovery above this resistance could open the door to the 50% Fibonacci retracement level at $87,823, followed by the 100-week SMA near $89,134. However, such a move would likely require stronger institutional participation and improved market sentiment.
Daily chart: key moving averages in play
Bitcoin's daily chart presents a more balanced but still bearish outlook. At approximately $76,587, BTC is trading slightly above its 200-day Exponential Moving Average (EMA) around $76,466, which serves as an important support level. Meanwhile, the cryptocurrency remains below its 100-day EMA near $77,821 and its 50-day EMA at approximately $80,287, indicating that sellers dominate the immediate trading range.
The daily RSI stands near 34, reflecting subdued buying momentum and increasing bearish pressure. The MACD histogram remains below zero, suggesting that downside momentum has not fully subsided. For a meaningful recovery, Bitcoin would need to reclaim the $80,287 resistance level. A successful breakout could encourage buyers to target the psychological $85,000 barrier.
A decisive breakdown beneath the 200-day EMA would further weaken Bitcoin's medium-term technical structure and increase the probability of a broader correction. Conversely, a recovery above $78,661 could provide an early indication that buyers are returning, but reclaiming $80,287 would offer stronger evidence of improving momentum.
This article is for informational purposes only and does not constitute financial advice.
