Bitcoin retests support below $75,000 as downside pressure holds

• Bitcoin price fell to below $75,000 on Wednesday, touching $74,600.
• ETF outflows and broader market headwinds mean downside pressure remains.
• Analysts say the current price outlook includes a “dangerous divergence”.

Bitcoin briefly dipped below the $75,000 mark on Wednesday, extending losses from recent highs.

The decline came as selling pressure persisted and spot ETF outflows continued for a seventh straight session.

BTC could rebound sharply if bulls establish sustainable support near current levels. Otherwise, analysts warn that further downside may follow amid a growing divergence between market optimism and actual capital inflows.

The crypto bellwether traded around $75,175 at the time of writing, down 1.29% over the past 24 hours and nearly 3% lower for the week.

Bitcoin tests support below $75k

The week started poorly for Bitcoin as recent gains toward $78,000 evaporated amid persistent geopolitical and macroeconomic headwinds.

On Wednesday, BTC fell to an intraday low of $74,600 during Asian trading hours, testing a support zone that has intermittently held since the asset’s latest recovery.

The move coincided with continued withdrawals from spot Bitcoin exchange-traded funds.

According to SoSoValue, Bitcoin spot ETFs recorded net outflows of $334 million on May 26.

The figure marked the seventh consecutive day of net redemptions, reinforcing downward pressure on price despite periodic spot-market buying.

Bitcoin price outlook: analysts warn of “dangerous divergence”

Market participants noted that Wednesday’s decline remained relatively orderly, with volatility lower than during previous sell-offs.

Liquidity continued to cluster in the $72,000-$76,000 range, where buyers repeatedly emerged to absorb intraday selling pressure.

Still, persistent ETF outflows and profit-taking from recent highs continue to tilt the near-term outlook to the downside.

Analysts and on-chain researchers have also raised caution flags over weakening demand dynamics.

Crypto investor and analyst Axel Adler Jr. shared concerns on X about what some market watchers describe as a “dangerous divergence” between rising optimism and fading capital inflows.

That view was echoed by a CryptoQuant analyst, who argued that improving bullish sentiment has not been matched by fresh money entering the market.

The analyst added that price strength built on weak inflows may remain vulnerable to sharp reversals.

Meanwhile, analysts at Bitfinex said Bitcoin’s current reaction to ETF outflows differs from earlier market downturns.

From a technical perspective, Bitcoin now appears caught between the risk of a deeper retracement toward $70,000 and the possibility of renewed bullish momentum.

If buyers regain control, recent highs in the $78,000-$83,000 range could come back into focus.

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