Bitcoin’s price has entered a correction, falling 14% from its yearly high amid persistent outflows from spot exchange-traded funds (ETFs) and the formation of a bearish chart pattern.

Investors have been moving away from Bitcoin holdings, a sentiment reflected in the substantial withdrawals from U.S. spot Bitcoin ETFs. This week alone, these funds saw a net outflow of over $1.23 billion, according to data from SoSoValue. Major funds like BlackRock’s IBIT and Fidelity’s FBTC were among those that experienced significant asset reductions. This activity marks a sharp reversal from the previous two weeks, which had attracted nearly $6 billion in fresh capital.

The total cumulative inflows since the ETFs launched in January now stand at $61.54 billion after accounting for the recent withdrawals.

The sell-off appears linked to a major liquidation event last Friday, where over $4.65 billion in positions were wiped out as the crypto market declined. It’s common for market participants to reduce exposure or wait on the sidelines after such a significant downturn. Broader economic concerns are also weighing on investor sentiment. With gold gaining appeal as a safe-haven asset, markets are bracing for potential risks from the U.S.-China trade war, which could fuel inflation and delay interest rate cuts by the Federal Reserve. Other cited risks include an ongoing U.S. government shutdown and emerging credit quality issues after several regional banks reported fraud-related losses.

Bitcoin Price Technical Analysis

On the daily chart, Bitcoin’s price remains under pressure after its recent 14% drop. The price has fallen below the 50-day moving average, and the Supertrend indicator has turned red, signaling bearish momentum. Critically, the coin has formed a double-top pattern near its recent peak, which is one of the most recognized bearish signals in technical analysis.

A double-top pattern often suggests that an upward trend is losing strength and a reversal may be imminent. If the pattern plays out, the price could decline further, potentially targeting its lowest levels since April of this year. To invalidate this bearish outlook, Bitcoin would need to reclaim key resistance levels above the double-top formation.

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