Bitcoin hovered around the $87,000 mark on Tuesday, showing little price movement even as pressure from spot Bitcoin exchange-traded fund (ETF) outflows began to ease for the first time in over a week. While the market remains cautious, some traders and analysts believe the recent slowdown in selling could be an early sign that a short-term reversal is approaching.
According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded net outflows of $19.29 million on Monday, Dec. 29. That figure marked a notable shift from the previous six sessions, which saw triple-digit daily outflows totaling roughly $1.1 billion. The reduced pace suggests that institutional selling may be losing momentum after weeks of sustained withdrawals.
Among individual funds, Invesco’s BTCO saw the largest outflow of the day at $10.41 million. BlackRock’s IBIT followed with $7.92 million in redemptions, while ARK 21Shares’ ARKB posted $6.66 million in outflows. Fidelity’s FBTC provided some balance, attracting $5.7 million in inflows, while the remaining spot Bitcoin ETFs reported no net movement.
The cooling of ETF outflows is being closely watched because these regulated investment vehicles have played a major role in shaping Bitcoin’s price action over the past year. Large institutional players often dictate broader market direction through their allocation decisions, influencing liquidity and overall risk appetite.
Bitcoin previously surged to an all-time high of $126,080 in October, driven largely by heavy ETF inflows in the preceding months. Since that peak, however, sentiment has shifted, with nearly $4.6 billion exiting spot Bitcoin ETFs. Despite this pullback, recent data suggests selling pressure may be easing. Some analysts note that long-term Bitcoin holders have stopped selling for the first time since July, as of Dec. 29.
Well-known analyst Ted Pillows commented that the slowdown in distribution could help change the current trend. “Things are looking good for a relief rally here,” he said. Another market observer, Crypto Caesar, echoed the sentiment, predicting that Bitcoin may soon find a bottom and bounce higher.
From a technical perspective, Bitcoin has been consolidating within a symmetrical triangle pattern on the daily chart since mid-November. This structure typically forms when price action tightens between two converging trendlines, often preceding a decisive breakout. A move above the upper boundary could spark a strong rally, while a breakdown below support may open the door to further losses.
At the time of writing, BTC was trading closer to the lower trendline, putting the market at a critical decision point. Momentum indicators have improved slightly but remain near neutral, reinforcing the idea of consolidation rather than a clear trend.
Traders are keeping a close eye on the $86,000 psychological support level. A sustained move below it could send Bitcoin toward its November low of $82,175. On the upside, resistance sits near $91,500, a level that aligns with the 23.6% Fibonacci retracement between the October high and November low. Whether easing ETF pressure can fuel a breakout remains the key question for the days ahead.
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