Bitcoin is facing fresh downside risk as institutional demand weakens and technical indicators turn bearish.
Bitcoin was trading at $67,420 on Wednesday, down from last weekend’s high above $70,000. The coin is now sharply lower than its all-time high of $126,300.
One key warning sign is the Coinbase Premium Index, which has stayed in negative territory this year. Coinbase is widely used by American investors, and a negative premium suggests weaker US demand.
Data from SoSoValue shows that spot Bitcoin ETFs have recorded more than $8 billion in outflows since October. At the same time, futures open interest has dropped to about $44 billion, down from over $95 billion last year.
According to Bloomberg, some institutions have stepped back because Bitcoin has not acted as a strong hedge against inflation or equity market stress. Demand for leveraged exposure on CME has also remained soft.
On the technical side, Bitcoin is forming a bearish pennant pattern on the daily chart. The price remains below the 50-day and 100-day exponential moving averages, and the Supertrend indicator has stayed red since January 19.
If selling pressure continues, analysts say Bitcoin could first retest the $60,000 level. A break below that could open the door to a deeper slide toward the psychological $50,000 mark, a scenario recently highlighted by analysts at Standard Chartered.
