Bitcoin (BTC) remains under pressure on Thursday, trading below $73,500 as concerns over institutional demand and potential index-related selling weigh on investor confidence.
The largest cryptocurrency has declined more than 5% so far this week, struggling to recover despite a strong rebound in US technology stocks.
Sentiment deteriorated further after global index provider MSCI announced plans to remove Strategy (MSTR) and other affected companies from its benchmarks, raising concerns about potential selling by index-tracking investment funds.
Meanwhile, US spot Bitcoin exchange-traded funds (ETFs) recorded nearly $300 million in withdrawals on Wednesday, extending their losing streak to five consecutive trading days.
MSCI’s Strategy exclusion raises concerns over billions in fund flows
Bitcoin investors are assessing the potential consequences of MSCI’s decision to remove Strategy and other affected companies from its global equity indexes.
According to Wednesday’s announcement, the changes will take effect on December 1, with index-tracking funds potentially adjusting their holdings ahead of the November 30 deadline.
The planned exclusion could therefore have implications beyond Strategy’s stock performance.
Investment funds that track MSCI benchmarks may need to reduce or eliminate their holdings in affected companies to remain aligned with the updated indexes.
This could generate significant selling pressure on Strategy shares, depending on the amount of passive investment capital tracking the relevant benchmarks.
Tokyo-listed Metaplanet, another prominent corporate Bitcoin holder, and UK-based uranium investment company Yellow Cake were also named among the affected companies.
Institutional demand for Bitcoin continues to show signs of deterioration, with US spot ETFs extending their recent withdrawal streak.
According to SoSoValue, spot Bitcoin ETFs recorded $299.90 million in net outflows on Wednesday.
The latest withdrawals marked the fifth consecutive trading day of negative flows, continuing a trend that began the previous week.
The persistent redemptions suggest that investors are reducing their exposure to Bitcoin through regulated investment products.
If the outflow streak continues, it could reinforce the bearish outlook and increase the risk of further losses.
Bitcoin price forecast: $70,000 support remains the target
Bitcoin’s technical outlook remains bearish as the cryptocurrency continues trading below its major daily Exponential Moving Averages.
At the time of writing on Thursday, BTC trades around $73,490, maintaining a downward bias following its recent correction.
The 200-day EMA stands at $76,384, while the 100-day EMA is positioned around $77,411.
Meanwhile, the 50-day EMA sits higher at $78,701, creating another significant resistance barrier above the current market price.
Trading below all three moving averages suggests that sellers remain in control of the broader trend.
Momentum indicators reinforce the cautious outlook. The daily Relative Strength Index (RSI) hovers near 34, approaching the oversold threshold of 30.
The Moving Average Convergence Divergence (MACD) also remains negative, reflecting persistent bearish momentum.
On the downside, the next significant psychological support stands around $70,000. A sustained decline toward this level would represent another setback for buyers attempting to stabilize the cryptocurrency.
However, if the bulls regain control, several important technical barriers stand in the way of a sustained bullish reversal.
The first significant resistance is the 200-day EMA at $76,384. A convincing recovery above this level would provide an early indication that buying momentum is improving.
Beyond this hurdle, Bitcoin would need to reclaim the 100-day EMA around $77,411.
The next major resistance stands at the 50-day EMA near $78,701, completing a dense cluster of moving averages that could limit recovery attempts.
A sustained breakout above these levels would improve Bitcoin’s technical outlook and potentially open the door for a recovery toward the horizontal resistance zone around $85,000.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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