Bitcoin Extends Losses for Fourth Consecutive Day
Bitcoin continued its downward trajectory on Monday, trading below the $77,000 mark after posting nearly 6% losses over the previous week. The latest decline marks the fourth straight day of selling, as the cryptocurrency failed to hold above the critical $82,000 resistance zone.
Persistent outflows from US spot Bitcoin ETFs combined with stronger-than-expected inflation data have reduced investor appetite for risk assets across the board. This environment has left Bitcoin vulnerable to further downside moves in the near term.
Hot Inflation Data Strengthens Hawkish Fed Outlook
Last week's hotter-than-expected US inflation readings and robust retail sales figures have reinforced expectations for a more hawkish stance from the Federal Reserve. These developments have supported a stronger US dollar and pushed Treasury yields higher, creating additional headwinds for speculative assets such as cryptocurrencies.
Higher interest rate expectations typically reduce market liquidity and encourage capital to flow toward safer, yield-generating instruments. This shift has limited demand for Bitcoin and other risk-sensitive assets in recent sessions.
Institutional Demand Weakens as ETF Outflows Reach $1 Billion
Data from CoinGlass shows that US-listed Bitcoin spot ETFs recorded approximately $1 billion in net outflows last week, marking the largest weekly withdrawal in three months. The sharp reversal in flows indicates a cooling of institutional sentiment following several weeks of strong inflows that had previously supported Bitcoin's rally.
Analysts note that continued outflows in the coming sessions could exert additional downside pressure on Bitcoin prices. The recent rejection near $82,000 also triggered profit-taking from short-term holders, further intensifying the correction.
Key Technical Levels to Watch
- Immediate support near the 50-day and 100-day EMAs
- Next downside target around the $75,000 psychological level
- 38.2% Fibonacci retracement near $74,487
- Previous trendline breakout zone around $70,576
- 23.6% Fibonacci retracement near $68,950 as critical support
Bitcoin Price Outlook Remains Cautious
On the 4-hour chart, Bitcoin appears bearish after being rejected near the 100-week EMA around $82,289. The weekly RSI has slipped below the neutral 50 level and currently sits near 35, signaling strong bearish momentum, while the MACD histogram remains in negative territory.
If selling pressure persists, Bitcoin could extend losses toward major support zones. However, a bullish reversal would require a daily close above the 61.8% Fibonacci retracement near $83,437 and the horizontal resistance around $84,410 to regain upward momentum.
