Bitcoin (BTC) price fell to $79,800 on Thursday after being rejected at a key dynamic resistance level. The decline comes despite Bitcoin exchange-traded fund (ETF) inflows surging past $1 billion weekly for the first time since January, but technical data suggests the correction may be short-lived.
Bearish Difference Indicating Where BTC Price Will Go
Bitcoin’s fall below $80,000 occurred amid a decline in the relative strength index (RSI) on the 1-hour and 4-hour charts. A bearish divergence occurs when BTC forms higher highs and RSI weakens over lower time frames, indicating weakening buying momentum during the rally.
BTC/USDT, 4-hour chart. source: Cointelegraph/Trading View
A high weekly opening of $78,500 could stabilize near-term price action. Key technical support remains between $76,000 and $78,000, with the daily fair value gap (FVG) in line with Bitcoin’s 200-day exponential moving average (EMA). If the correction continues, BTC could retest the FVG zone before attempting another bounce above recent highs of $82,800.
Fair value gaps represent areas where previously limited trading activity has resulted in rapid price movements, leaving an imbalance that often becomes an area of liquidity during retracements.
Cryptocurrency Trader Jelle said The “200-day MA/EMA cluster” acts as resistance while also identifying $78,000 as the first major support area. According to Jelle, a retest of the 200-day moving average could allow Bitcoin to retest a higher price target.
Meanwhile, cryptocurrency trader Killa XBT Confirmed If selling pressure continues, it could lead to a deeper support area in the $76,300 to $74,700 range. Traders pointed to a weekly opening near $78,500 as a key short-term level that the bulls would like to defend.
This is Killa’s BTC 1-day chart analysis. Source: X
Related: Bitcoin Analysts Say BTC Price Must Break This Level To Confirm Bottom.
If we see ETF inflows, can they offset price weakness?
Spot Bitcoin ETF Demand reinforced Suddenly this week. Net inflows reached $1.05 billion, the highest weekly inflows since the third week of January. Friday’s positive close will see the largest weekly ETF inflow returns in nearly four months.
Spot BTC ETF net inflow. Source: SoSoValue
Meanwhile, Swissblock data It shows that the Bitcoin Risk Index has reset to almost zero, while ETF net flows have turned positive again at around 3,000 BTC. Historically, rising risk metrics have coincided with ETF outflows and increased selling pressure across the market.
Risk Index and BTC ETF Net Flow. Source: Swissblock/X
Reset to low-risk zones often coincided with new accumulations near major support clusters. The following additions were made to the analysis:
“The synchronization remains in effect. Even when the risk index rose slightly last week, we saw brief ETF selling, but accumulation quickly resumed. This means ETF demand is absorbing the selling pressure. This remains a flow-driven breakout.”
Related: Bitcoin Market Dominance Moves Above 61%: Will Altcoins Follow?