Bitcoin price slips below $110K as spot BTC ETFs record $536M net outflows

Bitcoin price slid below $110,000 as rising exchange-traded fund outflows and renewed selling pressure dragged the market deeper into correction territory.

Bitcoin traded lower on Oct. 17, falling below the $110,000 mark to reach $108,420 at press time, down 2.4% in the past 24 hours. The cryptocurrency has dropped 10% over the past week and 7% in the last month, now sitting 14% below its all-time high of $126,080.

Trading activity picked up during the decline. Bitcoin’s (BTC) 24-hour trading volume rose 25% to $83.1 billion, showing more movement as traders adjusted around key support zones.

Data from CoinGlass shows Bitcoin futures trading volume increased 40% to $127.6 billion, while open interest was nearly unchanged at $72.8 billion. This shows traders are active but cautious, adjusting positions instead of taking strong new bets.

Spot BTC ETF outlook

According to SoSoValue data, U.S. spot Bitcoin ETFs saw $536.4 million in outflows on Oct. 16, their second day of withdrawals. ARK Invest’s ARKB led with $275 million in redemptions, followed by Fidelity’s FBTC with $132 million. Grayscale’s GBTC, BlackRock’s IBIT, and Bitwise’s BITB also recorded smaller losses.

These consecutive outflows imply that following Bitcoin’s recent surge, some institutions are reducing their exposure or locking in profits. When ETF redemptions rise, it often adds short-term selling pressure, especially when market sentiment is uncertain.

Bitcoin price technical analysis

Bitcoin’s short-term technical setup is fragile. The relative strength index at 37 suggests neutral-to-weak momentum, while momentum shows a mild buy signal, indicating that downside pressure may be slowing.

But every major moving average, from the 200-day SMA ($107,535) to the 10-day EMA ($112,885), flashes sell signals, indicating a persistent bearish bias.

Bitcoin is hugging the lower Bollinger Bands and volatility is rising, which could indicate further movement if support breaks. The range of $108,000-$109,000 has emerged as a crucial level to monitor.

In the near future, Bitcoin may rise back toward the  $113,000- $115,000 zone if it stays at this level. While a breeak below this level may result in a move towards $104,000, it may also introduce new buyer interest.

If selling persists, some analysts, like Arthur Hayes, think a move close to $100,000 is feasible. Others believe that the price will soon stabilize, citing the continued steady demand from long-term holders and ETFs.