Signs of cautious trading are emerging as crypto markets react to changes in flows between Bitcoin ETFs.
summary
- Bitcoin ETFs have seen outflows for the sixth day in a row, totaling more than $2.05 billion, with BlackRock’s IBIT leading the way.
- Bitcoin is trading around $103,000, recovering from a drop below $99,000, but still facing weak demand and weak momentum.
- The outlook for Bitcoin price remains cautious, with resistance at $106,000 likely to limit upside, with the risk of a further drop below $100,000 if buyers remain on the sidelines.
Bitcoin ETFs have reported net outflows for six consecutive days, with $137 million leaving the market on November 5, according to SoSoValue data. This brings the total net outflows for the period to more than $2.05 billion, adding to the recent pressure on the fund.
Trading activity subsided, with only half of the 12 ETF issuers recording trades for the day. Of these, five companies were successful in attracting inflows, led by Fidelity’s FBTC, bringing in $113 million. Ark & 21Shares’ ARKB added $83 million in net inflows, while Grayscale, Bitwise and VanEck also posted moderate gains in their respective funds.
Despite these gains, inflows were offset by large outflows from BlackRock’s iShares Bitcoin Trust (IBIT), which totaled $375 million. This single issuer accounted for the majority of the daily net negative flows, overwhelming the positive movements of its peers and extending the overall streak of outflows.
The current ETF outflow began on October 29, coinciding with Bitcoin (BTC) falling below $110,000. There was a brief drop below this level in early October, but it quickly recovered, but this time Bitcoin fell even further, dropping to $99,000 before rising to $103,000.
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As market uncertainty increases, participants appear reluctant to re-enter with confidence. Although BTC remains above $103,000, it is down 7% over the past week, and the market is likely to remain cautious until there are clear signs of direction.
Bitcoin ETFs continue to be under pressure, so what’s next for Bitcoin price?
Bitcoin’s recent bounce off the $99,000 support level has done little to ease bearish sentiment in the market. A strong breakout of this zone early in the cycle in May led BTC to rally, eventually setting a series of new highs.
Bitcoin price chart amid ETF outflows | Source: TradingView
This momentum pushed BTC up to $126,200 due to price discovery. After 135 days, BTC has returned to familiar support, but the reaction has been much more muted and confidence has yet to recover along with the latest pullback.
Attention is now shifting to the $106,000 zone, which has turned from support to resistance. The current cautious environment and weak demand could keep this barrier in place and push BTC back below $100,000 if buyers do not intervene.
The current price action suggests that large investors are not interested in making any definitive moves at this point. As a result, BTC is likely to remain in the $99,000 to $106,000 range until a clear trigger emerges to break the impasse.
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