Bitcoin is currently trading slightly above $93,000, having fallen by over 1% in the past 24 hours. This marks a significant dip from its earlier highs, and the cryptocurrency is now struggling to regain its position above the $95,000 level. As Bitcoin continues to battle against this short-term decline, concerns about its ability to break past key resistance levels are growing, and many analysts are watching for further signs of weakness.

ETF Outflows Adding Selling Pressure to Bitcoin

A key factor contributing to Bitcoin’s recent struggle is the outflows from Bitcoin exchange-traded funds (ETFs). Monday saw a significant net outflow of approximately $435 million from Bitcoin ETFs, with the majority of this coming from non-BlackRock ETFs. This selling pressure is likely to continue if these outflows persist, as many investors view ETF investments as a major vehicle for Bitcoin exposure. While BlackRock’s Bitcoin ETF has seen inflows, the broader trend of outflows from other funds is creating downward pressure on Bitcoin’s price, potentially contributing to its recent decline.

These outflows have only compounded Bitcoin’s challenges in the short term. Although the cryptocurrency market has seen strong rallies in the past, ETF outflows are traditionally seen as an indicator of a bearish shift. If this pattern continues, Bitcoin may struggle to maintain its position above $93,000, potentially dropping toward lower support levels.

Bullish Long-Term Outlook Despite Short-Term Challenges

Despite the recent pullback, Bitcoin’s long-term outlook remains positive. Technical indicators such as the MACD crossover signal that upward momentum could resume once the current selling pressure eases. However, Bitcoin is facing strong resistance between the $100,000 and $102,000 range, which has proven difficult to breach. If Bitcoin fails to overcome this hurdle soon, it could enter a phase of consolidation or experience additional downward pressure.

A recent close below $94,000 now places this level as a critical resistance zone. If Bitcoin cannot reclaim this level, further downside risks could emerge. Support is seen around $88,000, with major support between $90,000 and $92,000, based on volume analysis. If Bitcoin fails to hold these levels, it could quickly fall to $77,000 or lower, as further selling pressure may push the price down toward the next critical support zones.

Signs of Bullish Divergence Amid Current Pullback

Interestingly, there are some signs of bullish divergence on smaller time frames, suggesting that a recovery or sideways movement could emerge in the near future. While the bearish sentiment has dominated in the short term, these signals hint that Bitcoin could experience a slight rebound in the coming days, provided that it can hold critical support levels around $91,000.

Liquidity is also building at both the $91,000 and $100,000 levels, suggesting that Bitcoin could see some price action in either direction. A break above $94,000 could result in a short squeeze, driving Bitcoin toward the $100,000 mark. However, Bitcoin will need to remain above key support levels to maintain this potential for a rebound.

Key Levels to Watch

As Bitcoin continues to face resistance at the $94,000 and $100,000 levels, the ability to break above these levels will determine whether it can resume its upward trajectory. If it fails to do so, Bitcoin could see a correction toward $77,000, particularly if ETF outflows continue.

The next few days will be crucial for Bitcoin as it navigates these challenges. Bulls will need to see a reclaiming of key resistance levels for the price to rise again, while bears will be looking for further signs of weakness to drive the price down. As always, Bitcoin’s volatile nature makes it difficult to predict with certainty, but key support and resistance levels will be the deciding factors in its short-term direction.