Why is Bitcoin price stuck below $75,000?

Bitcoin has struggled to reclaim $75,000 as continued withdrawals from US spot exchange-traded funds, weak buying demand and uncertainty over the Federal Reserve’s next interest rate decision have kept the cryptocurrency under pressure.

According to CoinGecko data, Bitcoin was trading at $74,733 on November 10, up 0.6% over the past 24 hours, although it remained down 2.8% over the week and nearly 10% over the past month.

The cryptocurrency briefly climbed above $75,400 during the previous trading session but failed to hold those gains. Buyers subsequently defended the $74,300 region, leaving Bitcoin trading within a relatively narrow range as investors awaited fresh economic data.

Bitcoin ETF outflows continue to weigh on prices

One of the main reasons behind Bitcoin’s recent weakness has been the continued withdrawal of institutional capital from US spot Bitcoin ETFs.

According to Farside Investors’ ETF data, the funds recorded approximately $1.28 billion in net outflows between November 2 and November 6, with withdrawals recorded on four of the five trading days.

BlackRock’s iShares Bitcoin Trust accounted for roughly $1.21 billion of those withdrawals, while Fidelity’s FBTC attracted $93.1 million over the same period.

Friday alone saw investors withdraw $411.9 million across the funds, following another $430.2 million in net redemptions on Thursday. Wednesday was the only positive session, with $74.6 million in inflows.

The withdrawals continued on November 9, when spot Bitcoin ETFs recorded another $201 million in net outflows, including $213.2 million from BlackRock’s IBIT.

The selling pressure has coincided with weaker demand in the spot market, where buyers have struggled to absorb the supply entering the market.

In its November 4 market assessment, Bitfinex analysts found that Bitcoin’s earlier recovery towards $80,000 was supported largely by leveraged futures positions, while direct spot purchases remained relatively subdued.

Bitcoin futures open interest had climbed to 701,548 BTC on November 3, its highest level since September 22, even as spot buying remained weak.

Liquidations and corporate treasury concerns add pressure

The latest decline has been accompanied by substantial liquidations across cryptocurrency derivatives markets.

As crypto.news previously reported, more than $1 billion in leveraged cryptocurrency positions were liquidated during Sunday’s volatility, with long traders accounting for most of the losses.

Bitcoin alone accounted for approximately $278 million in liquidations as prices briefly dropped towards $73,700.

Corporate Bitcoin treasuries have faced their own financial pressures as falling cryptocurrency prices have complicated the funding arrangements used by some publicly traded companies.

An October 30 assessment found that corporate Bitcoin treasuries held approximately 1.3 million BTC across 180 listed companies, while Bitfinex raised concerns about the sustainability of preferred-share financing.

Despite those concerns, Strategy disclosed on November 9 that it had purchased another 1,036 Bitcoin for $81.9 million, bringing its holdings to 850,364 BTC.

The company reported an average acquisition cost of $75,456 per Bitcoin, slightly above the cryptocurrency’s prevailing market price.

US inflation data keeps Bitcoin traders cautious

Macroeconomic uncertainty has added another obstacle to Bitcoin’s recovery, particularly after stronger US employment figures raised expectations that the Federal Reserve could maintain higher interest rates.

The US economy added 165,000 jobs in October, prompting investors to reassess the possibility of another interest rate increase at the central bank’s December meeting.

Attention has now turned to the October Consumer Price Index report, scheduled for release on November 10 at 8:30 a.m. Eastern Time.

Economists surveyed by FactSet expect monthly consumer prices to rise 0.2%, compared with September’s 0.6% increase.

A stronger inflation reading could reinforce expectations of tighter monetary policy, while softer figures could ease some of the pressure on risk assets.

Bitcoin price faces resistance near $75,000

From a technical perspective, Bitcoin’s failure to reclaim $75,000 has left several previously important support levels acting as potential resistance.

A November 7 technical assessment placed Bitcoin’s 50-week moving average near $75,562, while the daily relative strength index stood at 38.78, below the neutral reading of 50.

On the daily chart, technical indicators showed that the cryptocurrency was trading below its 10, 20, 50, 100 and 200-day exponential moving averages, while the 14-day Relative Strength Index stood near 36.5, indicating weak momentum without entering oversold territory.

The MACD remained in negative territory, with its histogram below zero, while the lower Bollinger Band near $73,550 represented another level to watch if selling pressure continued.

Bitcoin faces resistance between $76,500 and $77,500, where a concentration of leveraged positions could trigger liquidations if prices move higher. Another cluster sits between $74,400 and $74,600, close to where the cryptocurrency has recently been trading.

On the downside, Hilbert Group chief investment officer Russell Thompson sees $71,900 as an important support level. He warned that Bitcoin could fall towards $65,000 if buyers fail to defend that price.

Traders have meanwhile been paying more for protection against further losses. Thompson noted that five-delta put implied volatility stood at 51, compared with 38 for at-the-money options, suggesting stronger demand for protection against a substantial price decline.