## Bitcoin Bounces Despite Institutional Pullback: Technical Analysis Shows Key Support Under Pressure

Bitcoin has staged a modest recovery, currently trading around $95.61K with a 24-hour decline of 2.03%, maintaining near-term support levels even as major cryptocurrency funds experience significant capital outflows. The latest trading data reveals a complex market dynamic where price action and investor positioning are sending mixed signals about medium-term direction.

### Technical Setup Points to Consolidation Zone

From a technical perspective, Bitcoin is navigating a critical juncture around the $87,600 support level, which has successfully held several recent daily closes. The 14-day Relative Strength Index (RSI) stands at 45.20, sitting just below the neutral threshold of 50, indicating a market that remains neither overbought nor oversold but tilted toward weak bearish momentum.

The broader price structure since mid-October shows a series of lower highs and lower lows following the $123,000 peak, establishing a clear downtrend. Resistance layers have formed around $90,000, with more substantial selling pressure evident between $95,000 and $96,000—areas where consolidation occurred in late November. Should Bitcoin fail to defend current support levels, traders are eyeing the $82,000 to $84,000 zone as a potential accumulation area.

### ETF Outflows Reflect Institutional Caution

US-listed spot Bitcoin ETFs witnessed substantial redemptions during the Christmas holiday week, with $782 million flowing out. A single-day spike of $276 million in outflows occurred on Friday, marking the sixth consecutive day of net withdrawals—the longest streak since early autumn. This extended redemption phase has pushed total net assets in major spot Bitcoin ETFs down to approximately $113.5 billion, retreating from December peaks above $120 billion.

BlackRock's IBIT fund led the exodus, with nearly $193 million in redemptions, while Fidelity's FBTC saw $74 million leave the fund. Grayscale's GBTC continued recording modest redemptions as investors reduced exposure across major products.

### Institutional Positioning Remains Cautious

Data from Glassnode reveals that Bitcoin and Ether ETFs have been in a sustained redemption phase since early November, suggesting institutional investors are adopting a more conservative stance despite near-term price bounces. While analysts note that holiday-driven thin liquidity typically accelerates redemptions during year-end periods, the broader pattern signals that institutional enthusiasm—a major driver of crypto markets throughout 2025—has cooled considerably.

Market observers suggest flows may stabilize in January as trading normalizes and institutions reassess allocations. Anticipated Federal Reserve rate cut expectations, currently priced at 75–100 basis points for 2026, combined with expanding bank-backed crypto infrastructure, could potentially attract renewed institutional demand. However, current momentum remains insufficient to confirm a decisive reversal in the near term.