6-Day Outflow Spells Market Turmoil

Bitcoin’s price slid to a multi-week low of under $109,000 on August 26th, down about 2% from the previous day.

As crypto majors continued to bleed this week, data suggest that retail investors are panicking.

Is This the Bottom?

Bitcoin ETFs are experiencing their longest outflow streak in six market days, a trend not seen since early April during the peak of tariff fears. Interestingly, these flows appear increasingly driven by retail investors rather than institutional players.

Santiment observed that a large number of retail traders often react emotionally, pulling funds when they believe the market has topped. While such outflows can temporarily pressure prices downward, previous instances reveal that they frequently point to approaching market bottoms, as was evident during the April sell-off.

Bitcoin Vector also believes that short-term pain may precede renewed strength. In its latest update, the platform flagged a Structure Shift, an indicator it uses to track changes in Bitcoin’s broader market trend, which has now turned bullish again. This means that the system remains intact despite recent turbulence and that the structure is still holding in bullish territory.

However, price momentum has dipped into negative territory, which introduces short-term downside risk. This divergence creates a crossroads: either momentum recovers, which will align with the bullish structure for an upside continuation, or the structure itself breaks down, leading to bearish follow-through.

While some additional downside volatility may still play out, all the signals taken together indicate a higher probability of a move upward once momentum is established.

All Eyes on $105K

That crossroads becomes even clearer when examining wallet behavior. After the drop, CryptoQuant’s research zoomed in on $105K, which has now emerged as Bitcoin’s crucial support. Selling still leads but is slowing, but experts believe that the pressure is easing.

Holding this level could spark recovery, while a breakdown may trigger deeper panic.