Bitcoin Slips as Market Liquidity Tightens and ETF Flows Reverse

Bitcoin spent the last 24 hours under pressure, falling 1.1% from around $119,000 to just under $117,700. This follows a volatile week where Bitcoin nearly set new record highs but failed to hold its ground.

Ethereum dropped even more, sliding 4.3% to $4,448 after seeing nearly $60 million pulled out of its exchange-traded funds—a sharp reversal from the heavy inflows earlier this month.

Charts from TradingView show Bitcoin losing steam. On the 4-hour chart, the momentum indicator (RSI) fell to 42, signaling that selling has gone too far for now.

The MACD also turned negative, showing that sellers have control as U.S. trading picked up overnight.

Prices dipped below the frequently watched 21-period moving average, making the $116,000 level an important test for buyers.

Looking at the daily chart, Bitcoin still holds onto a broader uptrend. Buyers keep stepping in when price falls, shown by the steady pattern of higher lows.

But the RSI hovered near 51—right at the midpoint—and the MACD momentum is flattening, suggesting that confidence among buyers is fading alongside shrinking price swings.

Bitcoin Slips as Market Liquidity Tightens and ETF Flows Reverse

The Global Liquidity Index, shown as a yellow line, took a notable dive before stabilizing in the last session.

This means there is less money sloshing around in the global financial system, making big price moves more likely but also riskier.

When funding becomes tight, crypto investors often react swiftly to news and market signals, intensifying swings.

Volume, which measures how much is traded, increased during selloffs. This confirms that sellers dominated trading, while buyers only put up a fight when Bitcoin neared $115,000—the next support level.

If that line breaks, a slide toward $112,000 could follow. Otherwise, any bounce will need strong volume to convince the market that buyers are back in control.

Stepping back, fundamental factors add to the caution. The U.S. dollar grew stronger and Federal Reserve officials sent cautious signals about future interest rates.

This pulled down risky assets like cryptocurrencies and made it easier for recent ETF investors to start taking profits.

Not all coins faced losses. The Alpine F1 Team token soared 52% after a sponsorship deal, while PUBLIC and MYX each gained over 10%.

Elsewhere, popular coins dropped alongside the market, especially Solana and Avalanche, both down more than 4%.

This selloff tells an important story: confidence can shift quickly, especially when liquidity dries up and big investors change course.

Technical indicators confirm the market cooled off, while cash flowing out of some crypto funds signals that even die-hard traders have started to rethink their positions.

For now, buyers and sellers remain at a standoff, watching global money flows and ETF demand decide what happens next.

Related coverage: Bitcoin’s Dramatic U-Turn Sends Shockwaves Through Global Crypto Markets · Bitcoin's Overnight High Shows Power of Global Money Flows and New Crypto Rules · Bitcoin and Crypto Assets Hit Rough Patch as Weak ETF Flows Weigh on Market · Bitcoin and Crypto Markets Squeezed by Institutional Moves as Global Volatility Surges

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