Bitcoin price fell below $80,000 on Thursday after failing to break through a key technical resistance, with the price reaching around $79,800.
At the time of writing, Bitcoin price was at $79,712, up 0.01% since it opened early Friday in Asian trading.
The decline came despite inflows into US-based Bitcoin spot ETFs surging above $1 billion for the first time since January, indicating that institutional investor interest remains strong.
From a technical perspective, the drop was linked to the emergence of a bearish divergence on the one-hour and four-hour RSI indicators.
This situation occurred when Bitcoin price was trading higher but buying momentum was weakening, signaling that the previous rally was losing steam.
The key support level is currently around $78,500, which is Bitcoin’s weekly opening level.
If the price manages to hold above that zone, selling pressure is expected to be contained in the short term.
In addition, the area between $76,000 and $78,000 is also a key support zone as it is aligned with the Fair Value Gap (FVG) and the 200-day exponential moving average (200-day EMA).
Crypto analyst Jelle said that the 200-day moving average group is now acting as a major resistance, while $78,000 is the first support that buyers need to defend.
Meanwhile, crypto trader Killa XBT expects a deeper support zone between $76,300 and $74,700 if selling pressure continues to increase.
Despite the Bitcoin price correction, demand for Bitcoin spot ETFs continues to increase.
Data shows that net fund inflows reached around $1.05 billion this week, making it the largest weekly inflow since January.
According to Swissblock, the resurgence in ETF inflows shows that institutional investors are still actively accumulating Bitcoin, thus helping to absorb selling pressure and supporting a potential price recovery in the near term.
