Bitcoin struggled to regain momentum on Monday, hovering around the $89,000 level as selling pressure from U.S. spot Bitcoin exchange-traded funds continued to weigh on the market. Despite a brief intraday recovery, fading institutional demand and cautious sentiment kept prices capped.
ETF outflows signal weakening institutional appetite
According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded roughly $497 million in net outflows between Dec. 15 and Dec. 19. The largest withdrawals came from BlackRock’s IBIT fund, which saw about $240 million exit over the week. This was followed by funds linked to Bitwise and ARK 21Shares, which together shed more than $215 million.
Additional selling was recorded across products from VanEck and Grayscale, contributing over $70 million in combined outflows. In contrast, Fidelity stood out as an exception, attracting approximately $33 million in inflows during the same period.
The sustained withdrawals suggest that institutional confidence in short-term upside is weakening. Over the past month alone, spot Bitcoin ETFs have seen around $3.5 billion in net outflows, a sharp reversal from October, when inflows surged to nearly $7 billion as Bitcoin printed a new all-time high.
Price action remains cautious amid thin liquidity
Bitcoin fell nearly 6% last week, sliding from around $90,000 to a low near $84,580. Although prices rebounded to roughly $89,800 earlier on Dec. 22, sellers quickly regained control, pushing Bitcoin back toward the $89,100 area at the time of writing.
Seasonal factors are also playing a role. Holiday-thinned liquidity, combined with broader macroeconomic uncertainty, has kept traders cautious. Markets are largely in wait-and-see mode ahead of key U.S. economic data releases later this week, including GDP figures and jobless claims, which could influence near-term risk appetite.
Charts point to growing downside risk
From a technical perspective, Bitcoin’s daily chart is flashing multiple bearish signals. Since late October, price action has been confined within a bearish flag pattern, often associated with trend continuation to the downside. Bitcoin is now testing the lower boundary of this structure, raising the risk of a breakdown.
A confirmed move lower could also validate a larger inverse cup-and-handle formation, reinforcing the bearish outlook. For now, traders are closely monitoring $85,220 as immediate support. A decisive break below this level may expose Bitcoin to deeper losses toward the psychological $80,000 zone.
On the upside, bulls face stiff resistance near $91,415, which aligns with the 23.6% Fibonacci retracement from October’s peak to November’s decline. Reclaiming this level would be necessary to restore bullish momentum.
Outlook
Until ETF flows stabilize or a clear technical reversal emerges, Bitcoin is likely to remain under pressure. With institutional demand cooling and macro uncertainty lingering, the market appears set for continued consolidation or further downside in the near term.
