Bitcoin’s recovery is encountering growing resistance as institutional investors continue pulling funds from the market. US spot Bitcoin ETFs have posted five consecutive days of net outflows, recording approximately $1.44 billion in withdrawals between November 5 and November 11.
Bitcoin is trading around $73,500 but has struggled to regain the $75,000 level. The continued ETF withdrawals have raised concerns about whether the latest market rebound could turn into another bull trap.
The timing of the selling pressure is particularly notable. BTC briefly moved above $80,000 on November 4 before reversing sharply the next day. Since that decline, the cryptocurrency market has struggled to rebuild bullish momentum, leaving investors questioning whether recent buyers entered the market prematurely.
Bitcoin ETF outflows reached $430.2 million on November 5, followed by another $411.9 million on November 6. Selling continued across the November 9, 10, and 11 sessions.
BlackRock’s iShares Bitcoin Trust (IBIT) led the latest withdrawals, recording $269.7 million in net outflows in the most recent session.
Bitcoin ETF Selling Raises Fresh Concerns About a Bull Trap
The prolonged withdrawal streak suggests that institutional investors are providing limited support for Bitcoin’s attempted recovery. US spot Bitcoin ETFs have lost approximately $1.44 billion over five consecutive sessions, with BlackRock’s IBIT accounting for roughly 75% of the total outflows.
Nevertheless, institutional demand has not completely vanished. Morgan Stanley’s Bitcoin ETF recorded $9 million in fresh inflows during the latest session, offering a small positive signal amid widespread selling.
Glassnode’s Week 46 report also highlights deteriorating market conditions. Bitcoin has dropped below the short-term holder cost basis of $75,600, meaning investors who recently purchased the cryptocurrency are now holding unrealized losses.
The analytics platform additionally points to declining stablecoin supply and persistent ETF withdrawals. Together, these trends suggest that fresh capital is entering the crypto market at a slower pace.
This environment increases the risks for investors attempting to capitalize on lower prices. A temporary rebound could attract retail buyers, only for renewed selling pressure to reverse the recovery and leave late entrants facing losses.
Bitcoin Needs to Break Above $75,600 to Strengthen Its Bullish Outlook
Activity in Bitcoin’s derivatives market provides further insight into current positioning. BTC futures open interest remains above $50 billion, while funding rates continue to stay positive. This indicates that leveraged traders are still paying to maintain bullish exposure despite the recent downturn.
However, speculative leverage is gradually declining. Open interest has fallen as traders close positions, while a significant portion of leveraged long exposure around current price levels has already been eliminated.
This leaves the market facing two possible scenarios. A return of spot buying could support a healthier recovery, with reduced leverage lowering the possibility of another major liquidation cascade. On the other hand, another failed breakout could expose remaining leveraged buyers to additional losses.
The immediate recovery target remains $75,600. Reclaiming this level would push Bitcoin back above the short-term holder cost basis and potentially restore confidence among recent buyers.
A sustained advance toward $80,000 would offer stronger confirmation that bullish momentum is returning. However, a breakdown below $72,000 could expose BTC to another decline toward the $70,000 support area.
Despite the bearish signals, some indicators suggest that the market may be approaching a turning point. Two major wallet cohorts are showing accumulation activity, while selling pressure is beginning to lose momentum. This suggests that certain investors are already positioning themselves for a potential rebound.
Bitcoin does not necessarily need another dramatic sell-off to create a bull trap. A temporary rally that attracts fresh buyers but fails to generate sustained demand could be enough to trigger another downward move.
