Bitcoin enters bearish channel after slipping below key support levels. On Monday, BTC traded near $72,532, down 1.58%.
ETF outflows, rising oil prices, and renewed geopolitical uncertainty all weighed on market sentiment.
Why Bitcoin enters bearish channel now
Institutional demand weakened considerably. According to SoSoValue, spot Bitcoin ETFs recorded $1.42 billion in net outflows over the past week. May saw more than $2.4 billion in withdrawals. These redemptions removed a major source of buying pressure.
Geopolitical concerns added more uncertainty. Over the weekend, the U.S. military struck Iranian radar and drone facilities after Iran allegedly downed a U.S. drone. Oil markets reacted quickly. WTI crude futures climbed nearly 4% above $90 per barrel.
Higher energy prices renew concerns that inflation may stay elevated. This could delay Fed rate cuts, creating a less favorable environment for cryptocurrencies.
Technical structure puts $72K support under pressure
Bitcoin’s technical outlook has deteriorated. The daily chart shows BTC trading within a bearish channel, with sellers defending recovery attempts.
A key Fibonacci retracement from the January peak near $97,900 to the February low near $59,950 places Bitcoin beneath the 0.618 level at $74,470. Price now sits between 0.618 and 0.786 (near $68,100).
Momentum indicators favor sellers. The daily MACD crossed into negative territory. The RSI fell toward 41, below neutral.
Analyst Ali Martinez noted: “I’m watching $72,650 closely. If it fails, the next major demand zone sits between $54,300 and $51,000.”
Liquidation risks and invalidation factors
CoinGlass data shows large leverage clusters between $72,000 and $72,500. Long liquidations sit directly beneath current prices. A break below could trigger forced selling.
On the upside, Bitcoin would need to reclaim $74,500 – $75,600 to weaken the bearish structure. A confirmed US‑Iran peace agreement could also improve sentiment.
For now, Bitcoin enters bearish channel with eyes on $72,000. A break down opens the door toward $68,000 and eventually $54,000.