Bitcoin price approaches $75,600 danger zone as ETF investors pull $398M

Bitcoin BTC remains under selling pressure after recording its fourth consecutive weekly decline, with weakening institutional demand and lingering concerns over Binance's multibillion-dollar security breach weighing on investor confidence.

The leading cryptocurrency is trading around $76,585 on Tuesday, November 3, as investors assessed declining spot Bitcoin exchange-traded fund (ETF) inflows and the potential market implications of stolen assets moving across blockchain networks.

Technical indicators also suggest that Bitcoin's recovery remains fragile, with analysts watching the $75,597 support level for signs of a deeper correction.

Bitcoin ETF outflows signal declining institutional appetite

Institutional demand for Bitcoin appears to be losing momentum as investors continue reducing their exposure to cryptocurrency investment products.

According to SoSoValue, US spot Bitcoin ETFs registered approximately $202.59 million in net outflows during the final week of October.

The outflows continued this week, with $398.26 million withdrawn from the funds on Monday, reflecting cautious positioning among institutional investors.

The withdrawals followed a broader deterioration in ETF demand throughout the month. October ended with $515.03 million in net outflows, breaking a three-month streak of positive monthly inflows.

The reversal suggests that institutional investors have become increasingly hesitant to accumulate Bitcoin amid heightened market uncertainty.

Unless institutional demand improves, Bitcoin could struggle to establish a sustainable recovery, particularly as the broader cryptocurrency market continues to absorb recent security-related developments.

Beyond declining institutional demand, Bitcoin investors are grappling with the fallout from a major security incident involving Binance.

The world's largest centralized cryptocurrency exchange suffered a reported $6.3 billion security breach on October 29, with attackers targeting assets across ten blockchain networks.

Binance subsequently reassured customers that their holdings would remain protected, announcing plans to cover losses through its Secure Asset Fund for Users (SAFU) and corporate reserves.

The exchange also temporarily restricted withdrawals while conducting additional security checks.

Customers withdrew approximately $5.14 billion within 24 hours after Binance resumed operations, representing roughly 3% of the platform's assets.

Despite the substantial withdrawals, Binance reported that activity had begun to stabilize after the initial surge. The exchange also indicated that customer deposits remained significant.

For Bitcoin, weakened institutional demand and uncertainty over the stolen assets have created an unfavorable environment for a sustained rebound.

Bitcoin’s weekly chart points to $75,597 as critical support

Bitcoin's technical outlook remains cautious following four consecutive weeks of losses. BTC declined approximately 2.25% last week before extending its weakness into Tuesday's session, trading near $76,500.

On the weekly chart, the next significant downside target sits around $75,597, corresponding to the 50-week Simple Moving Average (SMA).

A sustained breakdown below this level, particularly on a weekly closing basis, could accelerate bearish momentum and expose the 200-week SMA near $67,776.

Momentum indicators also suggest that buyers are losing strength.

The weekly Relative Strength Index (RSI) stands around 49, slightly below the neutral threshold of 50. Although this reading does not confirm strong bearish momentum, it indicates that the previous bullish advantage has weakened considerably.

Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains in positive territory, but its declining bars suggest that upward momentum is fading.

Together, these indicators point to a market experiencing weakening buying pressure rather than a confirmed long-term bearish reversal.

On the upside, Bitcoin must first reclaim the 61.8% Fibonacci retracement level around $78,661.

A sustained recovery above this resistance could open the door to the 50% Fibonacci retracement level at $87,823, followed by the 100-week SMA near $89,134.

However, buyers would likely need stronger institutional participation and improved market sentiment to support such a move.

Bitcoin's daily chart presents a somewhat more balanced outlook, although bearish momentum remains evident.

At approximately $76,587, BTC is trading slightly above its 200-day EMA around $76,466. This moving average represents an important support level that could help prevent a deeper correction.

Furthermore, Bitcoin remains below its 100-day Exponential Moving Average (EMA) near $77,821, and 50-day EMA at approximately $80,287, suggesting that sellers continue to dominate the immediate trading range.

The daily RSI stands near 34, reflecting subdued buying momentum and increasing bearish pressure.

Similarly, the MACD histogram remains below zero, indicating that downside momentum has not fully subsided.

For a meaningful recovery, Bitcoin would need to reclaim the $80,287 resistance level. A successful breakout could encourage buyers to target the psychological $85,000 barrier.

Bitcoin is already trading below its 100-day EMA at $77,821, making the 200-day EMA near $76,466 the next key support level.

A decisive breakdown beneath the 200-day EMA would further weaken Bitcoin's medium-term technical structure and increase the probability of a broader correction.

A recovery above $78,661 could provide an early indication that buyers are returning, but reclaiming $80,287 would offer stronger evidence of improving momentum.

On the other hand, continued ETF withdrawals, further market uncertainty, or a breakdown below $76,466 could encourage sellers to target the weekly support level near $75,597.