Bitcoin priced under $80,000 on Thursday, continuing a slide that began earlier this week. The leading cryptocurrency fell after failing to break through a key overhead supply zone, with analysts pointing to a clear drop in institutional interest and a spike in profit-taking by traders.
ETF outflows hit three-month high
The most immediate factor behind the pullback appears to be institutional withdrawal. Data from CoinGlass shows spot Bitcoin ETFs recorded a massive $635.23 million in net outflows on Wednesday alone. That is the highest single-day withdrawal since the end of January. It also marks the second straight day of net outflows this week, reversing weeks of more mixed flows.
If these outflows continue or accelerate, the pressure on Bitcoin could persist. Institutional demand has been a pillar of the recent rally, and its sudden weakening is seen by many as a cautionary signal.
Profit-taking floods the market
At the same time, ordinary holders are cashing out. CryptoQuant’s weekly report highlights that 14,600 Bitcoin were realized in daily profits on May 4, the highest figure since December 10. The nearly 40% rally from April lows pushed many wallets back into profitable territory, and that triggered a wave of selling.
This kind of behavior often precedes a deeper correction. Traders who bought lower are locking in gains, and that newly added supply on exchanges can weigh heavily on the price in the short term.
Technical levels to watch
Bitcoin is trading at $79,458 as of this writing, having been rejected from the supply zone above. It has corrected for three days straight this week but is still holding above the 50-day and 100-day exponential moving averages, which cluster around $76,800. That is a meaningful floor, but the real test might be below it.
The cryptocurrency remains capped below the 200-day EMA at $81,986 and the key 61.8% Fibonacci retracement at $83,437. On the upside, bulls need to clear those levels to ease immediate pressure. A daily close above $84,410 would strengthen the case for a renewed push toward the January highs of $97,924.
On the downside, immediate support sits at the 50% Fibonacci retracement near $78,962. Below that, the 100-day EMA at $76,756 and the 50-day EMA at $76,479 could act as stronger buffers. If selling accelerates further, the 38.2% Fibonacci retracement at $74,487 and a broken upward trendline around $70,171 are the next logical supports.
The RSI sits in the mid-50s, indicating mild bullish bias but not much conviction. The MACD line is still in negative territory, suggesting that any upward momentum is tentative at best. The broader uptrend hasn’t broken yet, but the short-term path of least resistance appears to be lower unless demand picks up quickly.
