Market uncertainty drives Bitcoin decline
Bitcoin extended its losing streak for the fourth consecutive day, dropping 0.9% to trade around $111,678 according to market data. The decline reflects growing investor caution as markets prepare for key U.S. inflation data. Traders seem uncertain about whether the Federal Reserve will take a more aggressive or accommodative stance in its upcoming decisions.
This uncertainty has triggered a broad risk-off sentiment across financial markets. Many investors are scaling back their exposure to Bitcoin and other risk assets. The timing is particularly sensitive given the recent market volatility and shifting expectations around monetary policy.
ETF outflows and liquidations add pressure
The market faced significant pressure from ETF outflows, with U.S.-listed Bitcoin funds posting $466 million in outflows recently. These outflows outweighed the smaller inflows recorded earlier in the week, creating a net negative flow situation.
Monday’s $1.7 billion liquidation event, one of the largest of 2025, has prompted increased profit-taking among investors. Many are trying to reduce their Bitcoin exposure amid the broader market cooldown. The cautious sentiment seems to be spreading as investors reassess their risk tolerance.
Another factor contributing to the selling pressure is Friday’s $22.6 billion Bitcoin futures options expiry. Historically, Bitcoin tends to experience selling pressure ahead of large expirations as leveraged positions are unwound and traders hedge their risk. Some analysts suggest a relief rally could follow once this expiry passes and broader uncertainty clears.
Technical indicators signal weakening momentum
From a technical perspective, Bitcoin’s price action shows concerning patterns. The cryptocurrency has fallen significantly below its September 19 peak near $117,000, forming a descending pattern of lower highs and lower lows. This classic bearish structure suggests weakening momentum.
The Relative Strength Index (RSI) has dropped to 42.30, indicating waning buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) has flipped bearish with a growing negative histogram. Trading volume remains relatively muted, highlighting indecision from both bullish and bearish traders.
Current support levels appear to be holding around $110,000. If Bitcoin fails to maintain this level, further declines toward $108,000 seem possible. However, a recovery above $113,500 could potentially spark a price rebound.
The market seems to be in a wait-and-see mode, with many participants looking for clearer signals from economic data and institutional flows. The coming days will likely provide more direction as inflation data is released and options expiry passes.
