Bitcoin’s value took a notable dip on Thursday, falling to $111,000 amidst increased selling pressure. According to data from Glassnode, institutional appetite for U.S. spot Bitcoin ETFs has noticeably waned, with inflows dropping by 54% last week, down to $931.4 million from the preceding week’s $2.03 billion.
Glassnode highlighted that, despite ongoing accumulation trends, this decline reflects a significant slowdown in institutional demand. The current situation contrasts sharply with the upward momentum seen in early September when Bitcoin prices surged by 10% toward $118,000, buoyed by strong ETF inflows that peaked at $2.9 billion over just eight trading days. During this period, there was even a significant single-day inflow of $741 million, underscoring the rapid nature of market sentiment shifts.
Retail trading behavior has further compounded market challenges, with the spot taker CVD indicator indicating a dominance of selling over buying since mid-August. This trend suggests a risk-off mentality among retail investors, elevating the potential for a more pronounced downward trend in the coming weeks. Analysts are cautioning that if retail selling continues unabated, Bitcoin could see a deeper correction as October approaches.
Market analysts are increasingly vocal about potential downside risks. MC Capital founder Michael van de Poppe remarked that Bitcoin lacks the strength seen previously and warned that should it slip under the $112,000–$110,000 range, a drop toward the $103,000–$100,000 zone could follow. Another analyst, AlphaBTC, echoed these sentiments, noting that if Bitcoin’s current support at $112,000 fails to hold, it could lead to further declines toward the $105,000–$100,000 area.
Technical indicators also add to the caution, with Glassnode noting that Bitcoin has dipped below its 0.95 quantile cost basis of $115,300. To regain bullish momentum, Bitcoin would need to reclaim this threshold; otherwise, it faces a risk of drifting toward lower supports, potentially touching prices as low as $90,000.
Investors are advised to keep a close eye on two critical signals moving forward: an uptick in ETF inflows could revitalize institutional interest and provide stability to price movements, whereas sustained outflows coupled with retail selling may confirm a bearish trajectory and extend the current market correction.
The presence of a double top pattern on Bitcoin’s chart signals the possibility of $90,000 as a target if the existing support crumbles. Investors must now assess whether this marks an opportunistic shakeout before a subsequent rise or the onset of a deeper market reset.
