Bitcoin has endured a turbulent week, plunging approximately 4.5% as it fell from above $80,000 to a monthly low of $76,020. Currently, BTC is trading around $77,621, reflecting a notable decline of 38% from its all-time high reached in October.
This downward trend has been exacerbated by a wave of liquidations in the market. Reports indicate that around 104,013 traders faced liquidation within a 24-hour period, with total liquidations amounting to a staggering $257.67 million. Notably, Binance reported the largest single Bitcoin liquidation order valued at $3.04 million.
Other cryptocurrencies faced similar pressures; Ethereum dipped below $2,300, while XRP fell under $1.40, indicating that the market downturn was not confined to Bitcoin alone.
Institutional Selling Intensifies
A significant indicator of institutional activity, the Coinbase premium, has reached its lowest level this month at -0.0983% on May 21. This metric highlights the price disparity between Coinbase, which is favored by US institutions, and Binance, which is more commonly used by retail traders.
Market analysts have noted that institutional selling pressure has intensified, with professional investors on Coinbase reportedly selling more aggressively than their counterparts on Binance. The ongoing macroeconomic uncertainty appears to be driving institutions toward hedging strategies as they await clearer market signals.
Recent data reveals that US spot Bitcoin ETFs have experienced four consecutive days of outflows, totaling approximately $1.3 billion since May 14. Ethereum spot ETFs have also seen eight consecutive days of net outflows, shedding $28.14 million on May 20 alone. This trend suggests a broader sentiment of profit-taking among larger holders and a potential shift in portfolio strategies.
Technical Levels and Geopolitical Pressure
Despite a brief recovery above $78,000, analysts caution that the underlying spot demand remains weak. Predictions suggest that Bitcoin could rally towards $79,500–$80,000 if short positions are closed, but a continued downtrend is likely if demand does not strengthen.
On-chain analytics have shown that over 9,664 BTC, valued at more than $744 million, were transferred to exchanges over a five-day span, a movement often associated with selling intent. Additionally, geopolitical tensions, particularly between Iran and the United States, have contributed to market volatility, with oil prices surging over 4% following diplomatic setbacks.
As the market consolidates above $77,200, key resistance is observed at $78,000, while significant support lies at $76,200, with the next major level at $74,200. The interplay of institutional activity and geopolitical factors continues to shape the cryptocurrency landscape, leaving investors vigilant as they navigate these challenging waters.
