Bitcoin, Mass Liquidation of Long Positions... Recovery Hopes 'Chill' Amid Price Stagnation

▲ Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) was again halted below $78,000, putting a brake on its recovery trend. As outflows from US spot Bitcoin ETFs continued for the fourth consecutive day and liquidations of long positions expanded, doubts about a short-term rebound grew.

The Block reported on May 21 (local time) that Bitcoin was trading around $77,500 and failing to break past the $78,000 resistance level. While $80,000 was mentioned as the next key test in the market, ETF fund flows and liquidation pressure in the derivatives market were identified as factors limiting the recovery.

Outflows from spot Bitcoin ETFs continued for four consecutive trading days. In a situation where the sustainability of institutional demand is considered a key variable for price recovery, the prolonged ETF outflows strengthened the interpretation that the stagnation below $78,000 is not just a breather but a reconfirmation of a resistance zone.

Pressure also intensified in the derivatives market. As liquidations of long positions, anticipating a Bitcoin rebound, increased, confidence in recovery resilience weakened. With the price failing to break through resistance and liquidation volumes increasing, a trend emerged where short-term buying power could not easily regain dominance.

Market analysts believed that Bitcoin would need to surpass $80,000 to rekindle recovery expectations. The longer it remains below $78,000, the weaker buying pressure becomes, and ETF outflows and long position liquidations remain variables that fuel doubts about recovery.

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