Bitcoin struggled to gain momentum this week, hovering around the $89,000 level as investor interest in spot Bitcoin exchange-traded funds (ETFs) continued to cool. Despite brief recovery attempts, the world’s largest cryptocurrency remains under pressure, weighed down by heavy ETF outflows, cautious market sentiment, and growing technical weakness on the price charts.
According to data from SoSoValue, the 12 U.S.-listed spot Bitcoin ETFs saw combined net outflows of $497.05 million over the past week, between Dec. 15 and Dec. 19. This marked one of the largest weekly outflow figures in recent months and highlights a clear slowdown in institutional participation.
BlackRock’s IBIT led the decline, recording $240.3 million in withdrawals. It was followed by Bitwise’s BITB, which saw $115.1 million flow out, and ARK 21Shares’ ARKB, which lost $100.7 million. Additional pressure came from VanEck’s HODL and Grayscale’s GBTC and BTC funds, which together posted $74.1 million in net outflows.
Not all funds followed the trend, however. Fidelity’s FBTC managed to attract $33.1 million in inflows during the same period, standing out as the only major ETF to see fresh capital.
The broader picture shows a sustained decline in ETF demand. Over the past month, spot Bitcoin ETFs have recorded roughly $3.5 billion in net outflows, a sharp reversal from October, when these funds pulled in nearly $7 billion as Bitcoin surged to a new all-time high.
Bitcoin price action remains fragile
Bitcoin’s price has reflected this weakening demand. The asset dropped nearly 6%, falling from around $90,000 to a weekly low of $84,580 on Friday. While BTC rebounded to about $89,800 earlier on Dec. 22, sellers quickly regained control, pushing prices back to roughly $89,100 at the time of writing. Overall, Bitcoin was up just 1% over the past 24 hours.
Market activity has also been muted due to thin holiday liquidity, with many traders staying on the sidelines. Adding to the uncertainty are upcoming U.S. macroeconomic releases, including GDP data and jobless claims figures scheduled for Thursday, Dec. 25, which could influence risk appetite across markets.
Bearish patterns raise caution
From a technical perspective, Bitcoin’s daily chart is flashing multiple bearish signals. Since late October, BTC has been forming a bearish flag pattern, a structure that often signals further downside. The price is now hovering close to the lower boundary of this pattern, increasing the risk of a breakdown.
A confirmed move below this level could also validate a breakdown from a larger inverse cup and handle pattern, which has historically preceded deeper corrections.
Traders are currently watching $85,220 as a critical support zone. This level has previously acted as a strong floor where buyers stepped in. A decisive break below it could open the door to a decline toward the $80,000 psychological support.
On the upside, bulls face strong resistance near $91,415, which aligns with the 23.6% Fibonacci retracement level measured from Bitcoin’s October peak to its November drop. A breakout above this level would be needed to shift sentiment and signal a more meaningful recovery.
For now, Bitcoin remains range-bound, with ETF flows, macro data, and technical signals likely to determine its next major move.
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