- Bitcoin ETFs posted $1.25 billion in weekly net outflows.
- BTC must clear $78,152 to sustain bullish momentum.
- Strategy paused Bitcoin purchases despite holding 843,738 BTC.
Bitcoin (BTC) continued to trade near the $77,000 level on Monday amid growing institutional outflows against improving macro sentiment and rising demand from spot buyers.
The world’s largest cryptocurrency was up 0.5% over the past 24 hours, trading at $77,182 at press time, slightly outperforming the broader crypto market.
The slight rebound pushed BTC’s price closer to a major resistance zone near $78,000, a level that traders are watching closely after weeks of volatile price action and heavy selling pressure from spot exchange-traded funds.
The market is reacting to easing geopolitical tensions after US President Donald Trump said a potential agreement with Iran was “largely negotiated,” reducing fears of a wider Middle East conflict.
Bitcoin ETF outflows continue to pressure sentiment
Institutional demand for Bitcoin ETFs weakened sharply over the past week, with spot Bitcoin ETFs recording roughly $1.256 billion in net outflows between May 18 and May 22, according to CoinGlass data.
Several of the largest withdrawals came from products linked to BlackRock and Fidelity, two firms that played a major role in driving institutional adoption after spot Bitcoin ETFs launched in the United States in early 2024.
The outflows added to concerns that institutional appetite for BTC exposure may be cooling as investors rotate capital toward other sectors, particularly artificial intelligence and semiconductor-focused investments.
At the same time, Strategy, formerly known as MicroStrategy, has paused its aggressive Bitcoin buying campaign this week.
Nevertheless, the company still holds 843,738 BTC, making it the largest corporate Bitcoin holder globally, but it chose to buy bonds instead of adding more Bitcoin to its treasury.
The move attracted attention across the crypto market because Strategy and executive chairman Michael Saylor have been among Bitcoin’s strongest corporate supporters over the past several years.
Meanwhile, BlackRock CEO Larry Fink adopted a more measured tone while discussing Bitcoin’s role in institutional portfolios.
Although Fink highlighted the success of Bitcoin ETFs, his recent comments reflected a more cautious stance compared to earlier bullish statements.
Still, not all institutional activity turned negative. El Salvador added another eight Bitcoin to its national reserves, extending the country’s long-running accumulation strategy under President Nayib Bukele.
Bitcoin dominance rises as traders rotate out of altcoins
Even with ETF outflows accelerating, Bitcoin managed to hold above key support levels as capital continued rotating away from smaller cryptocurrencies and into BTC.
Market data shows Bitcoin outperforming much of the altcoin market during the latest recovery.
At the same time, derivatives activity has increased sharply, with open interest in perpetual futures contracts jumping 11.44% within 24 hours, signalling rising leveraged positioning among short-term traders.
That increase in leverage amplified Bitcoin’s move higher but also raised the risk of sharper volatility if macroeconomic data or market sentiment shifts suddenly.
Technical indicators point to a critical resistance zone
Technical indicators currently present a mixed picture for Bitcoin’s short-term outlook.
Data from 23 technical indicators shows four buy signals and nine sell signals, leaving the broader short-term trend tilted bearish despite the latest rebound.
The most important resistance level sits at $78,152. Bitcoin needs a decisive close above that level to sustain upward momentum and target the next resistance near $79,331.
On the downside, immediate support stands at $76,773. A breakdown below that level could expose Bitcoin to deeper losses, especially if traders begin unwinding leveraged positions.
The 14-day Relative Strength Index currently stands at 47.70, suggesting neutral conditions rather than an overheated market.
Moving averages also continue signalling caution.
The Bitcoin price currently trades above only two of the five major exponential moving averages, while remaining below the long-term 200-day EMA, a level many traders use to assess broader market direction.
Analysts are also watching the 61.8% Fibonacci retracement level near $76,590, which has emerged as another important support area during the latest consolidation phase.
