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Bitcoin (BTC) price correction is unlikely to stop anytime soon, it seems, after another 5% fall today, hitting an intraday low of $61,200. On the monthly chart, BTC is already down by more than 20% as investors seek the next month. Furthermore, the relentless selling of spot Bitcoin ETFs shows that the institutions are losing confidence.
Bitcoin Price Corrects 13% In A Week As Demand Contracts
Popular analyst Crypto Patel said that the bearish outlook for Bitcoin (BTC) price has played out perfectly after the rejection at $82,000 in the first week of May. Since then, BTC is down more than 26%, falling all the way to $61,200.
Despite the recent correction, Crypto Patel said he remains bullish on Bitcoin’s long-term prospects. However, he argued that a sustainable bull market is unlikely to begin until the current bearish phase is fully completed.
Looking ahead, the analyst identified $59,800 as a critical market structure level. He noted that a decisive break below this area could lead to a deeper decline, with potential downside targets below $50,000 and possibly as low as $40,000.
Crypto Patel added that he would view the $40,000 to $60,000 range as a potential long-term accumulation zone. He said that in this zone, he would gradually build spot positions if the market situation continues to weaken.
Another analyst, Captain Faibik, stated that the BTC price is just holding above the major trendline, which has been intact for eight years. Thus, the current price zone becomes a critical area for the bulls to defend.
According to the analyst, a successful defense of this long-term support level by buyers could mark the early stages of another major bullish cycle for Bitcoin. Captain Faibik noted that Bitcoin may first sweep liquidity in the $54,000 to $55,000 range. This could force weak hands to exit their positions before a potential reversal.
Bitcoin Price Drops Amid Weak Demand, Realized Losses
On-chain indicators have also shown the existing weakness surrounding Bitcoin, and the reason behind the BTC price drop. Blockchain analytics firm CryptoQuant noted that the demand for Bitcoin is contracting fast. The pace of the latest collapse is similar to the collapse of the Terra/Luna ecosystem in 2022.
According to the firm, combined speculative and spot demand for Bitcoin has declined by approximately 501,000 BTC. This is the fastest monthly contraction since May 22, 2022.
Similarly, Glassnode also noted that the recent Bitcoin crash to $61,000 comes with several on-chain indicators pointing to deteriorating market conditions. The analytics firm reported that investor profitability has declined sharply, realized losses have increased, and spot market sellers have regained control of price action.
According to Glassnode, the recent rally attempt has failed to gain traction. This reflects broader weakness in BTC demand and market conditions.
The analytics firm reported that investor profitability has declined sharply, realized losses have increased, and spot market sellers have regained control of Bitcoin price action.
Glassnode also highlighted that Bitcoin is now trading below the average cost basis of spot ETF investors. Moreover, the options market continues to price in elevated levels of risk and volatility.
Bitcoin ETF Outflows Increase Much
According to the latest ETF flow data, U.S. spot Bitcoin ETFs recorded net outflows of approximately $396.6 million, on June 3. With these, the ETF products have clocked 13 consecutive trading sessions of outflows. Total outflows during the period have now reached roughly $4.37 billion.
Among ETF issuers, BlackRock’s IBIT recorded the largest single-day withdrawal, with net outflows of approximately $342.34 million. Fidelity’s FBTC followed with net outflows of roughly $54.26 million. All other ETF providers saw net zero flows yesterday.
