Bitcoin (BTC) faced increased selling pressure this week, recording its fourth straight weekly decline as multiple headwinds dampened investor sentiment.
ETF outflows highlight cautious institutional stance
The leading cryptocurrency traded around $76,585 on Tuesday, November 3, as investors monitored ongoing outflows from spot Bitcoin exchange-traded funds (ETFs) and the potential impact of recent high-profile security breaches.
Data from SoSoValue revealed that US spot Bitcoin ETFs saw net outflows totaling approximately $202.59 million in the final week of October. The pattern continued into the new month, with an additional $398.26 million withdrawn from Bitcoin funds on Monday. This marked a decisive reversal from the prior trend of positive inflows, as October ended with net outflows of $515.03 million—ending a three-month streak of accumulation.
As institutional investors continued to reduce their exposure, the decline suggested a more cautious approach to Bitcoin allocations amid renewed market volatility and security concerns. Unless institutional demand improves, Bitcoin may struggle to achieve a sustainable recovery in the near term.
Institutional interest in Bitcoin cooled further as ETF outflows surpassed $398 million Monday, extending October’s net withdrawal total to $515 million and signaling growing caution among major investors.
Binance breach shakes investor confidence
Adding to market uncertainty, Binance, the world’s largest centralized cryptocurrency exchange, reported a major security incident on October 29. Attackers managed to steal $6.3 billion in assets spread across ten blockchain networks.
Binance took immediate measures in response, temporarily restricting user withdrawals to conduct thorough security checks. The company assured users it would cover losses through its Secure Asset Fund for Users (SAFU) and corporate reserves, reiterating customer holdings would stay protected.
After operations resumed, Binance users withdrew about $5.14 billion within 24 hours, accounting for roughly 3% of the platform’s assets. Despite this exodus, Binance reported that inflows subsequently stabilized and total user deposits remained robust.
The fallout from the incident and continued movement of stolen assets have contributed to an atmosphere of caution in the broader market.
Mini dictionary: Secure Asset Fund for Users (SAFU) – An emergency insurance fund established by Binance to reimburse users in case of significant security incidents or losses.
Technical outlook: Key support and resistance levels
Bitcoin’s technical indicators signal a fragile recovery. The weekly chart suggests that $75,597, aligning with the 50-week Simple Moving Average (SMA), is a critical support level. BTC slipped about 2.25% last week and remained under pressure, trading near $76,500 at last check.
If Bitcoin closes below the $75,597 support, sellers may gain momentum, with the next significant support appearing at the 200-week SMA near $67,776. On the upside, bulls are watching for a sustained move above the 61.8% Fibonacci retracement level around $78,661. The next resistance levels sit at the 50% Fibonacci retracement of $87,823, followed by the 100-week SMA near $89,134.
| Key Level | Type | Value |
|---|---|---|
| Support | 50-week SMA | $75,597 |
| Support | 200-week SMA | $67,776 |
| Resistance | 61.8% Fibonacci | $78,661 |
| Resistance | 50% Fibonacci | $87,823 |
| Resistance | 100-week SMA | $89,134 |
Momentum indicators also reveal a loss of bullish strength. The Relative Strength Index (RSI) stands at 49 on the weekly chart, signaling weakened sentiment. The Moving Average Convergence Divergence (MACD) histogram is positive but declining, indicating fading upward momentum.
On the daily chart, Bitcoin remains below both its 100-day EMA at $77,821 and 50-day EMA at $80,287, while managing to hold just above the 200-day EMA at $76,466. The daily RSI currently hovers around 34, reflecting subdued buying interest.
For Bitcoin to reverse its trend, it would need a firm break above $80,287, which could open the way to test $85,000. Persistent ETF outflows or a drop below $76,466, however, could drive prices towards the next weekly support level.
Bitcoin faces critical technical tests as support at $75,597 comes into focus, with continued ETF withdrawals and market uncertainty threatening further declines unless buying momentum returns.
