Bitcoin News Today: Bitcoin's Support Collapse Sparks Bear Market Fears, ETF Exodus

Bitcoin's price has fallen below a critical support level, signaling a potential shift in market sentiment and triggering widespread selloffs across the cryptocurrency sector. The $102,868 threshold-once a reliable bounce zone for the leading digital asset-has now become resistance, with traders reassessing strategies amid growing bearish momentum according to market analysis. The decline, which saw Bitcoin drop nearly 10% in seven days to close below its 50-week simple moving average (SMA), mirrors a similar breakdown observed in the shares of Strategy (MSTR), a major corporate holder of Bitcoin. This technical invalidation has prompted analysts to caution that the cryptocurrency could face extended downward pressure, akin to the prolonged sell-offs seen in traditional markets during similar breaches.

Macroeconomic uncertainty and shifting institutional sentiment are amplifying the sell-off. Declining confidence in an imminent Federal Reserve rate cut has dampened bullish optimism, as lower rates typically correlate with stronger Bitcoin performance. Meanwhile, institutional investors are adopting risk-off strategies amid concerns over overvalued AI stocks and broader market volatility. This cautious approach has spilled over into crypto markets, where Bitcoin's integration into traditional finance has made it more susceptible to equity-driven trends. The selloff has also been fueled by record liquidations-over $1.1 billion in leveraged positions were wiped out as Bitcoin dipped below $96,000, with long positions accounting for the bulk of the losses according to data.

On-chain data reveals further signs of late-cycle behavior. Long-term holders of Bitcoin and Ethereum have increased selling activity, with daily outflows from older Ethereum wallets surging to levels not seen since 2021. Glassnode analysts noted that this pattern aligns with typical bear market dynamics, where prolonged price declines erode confidence and trigger protective short-term strategies. Retail sentiment, as reflected on platforms like Stocktwits, has turned decisively bearish, with Bitcoin and Ethereum both trending downward amid heightened chatter.

Despite the near-term turbulence, some analysts remain cautiously optimistic about a potential rebound. Technical indicators suggest support levels between $90,000 and $98,000 could stabilize the price, with a possible bounce to $108,000–$114,500 if macroeconomic conditions improve and exchange-traded fund (ETF) inflows resume according to forecasts. Institutional accumulation of Bitcoin-over 4 million tokens added this year-also offers a floor, though bulls acknowledge the current drawdown could test patience according to analysis. The Federal Reserve's planned end to quantitative tightening on December 1, which could inject $50 billion into markets, may provide a catalyst for recovery according to market signals.

Bitcoin spot ETFs, however, have seen significant outflows, with $896 million exiting Bitcoin-focused products and $259 million from Ethereum ETFs in recent days. This contrasts with Solana's ETFs, which recorded modest inflows despite price declines, highlighting divergent investor behavior across the crypto ecosystem. Meanwhile, altcoins like Ethereum, XRP, and Solana have followed Bitcoin's lead, with Ethereum hitting a four-month low as retail and institutional selling persisted according to market data.