Bitcoin’s recovery is losing momentum as institutional investors continue withdrawing money from the cryptocurrency market. US spot Bitcoin ETFs have experienced five consecutive trading sessions of net outflows, with total withdrawals reaching approximately $1.44 billion between November 5 and November 11.

BTC is trading near $73,500 but continues to face resistance around $75,000. The prolonged ETF outflow streak has intensified concerns about whether the latest rebound can hold or whether investors are facing another potential bull trap.

The recent price action has added to market uncertainty. Bitcoin briefly climbed above $80,000 on November 4 before experiencing a sharp reversal the following day. Since then, the cryptocurrency market has struggled to regain its bullish momentum, raising concerns that investors buying the dip may have entered their positions prematurely.

US spot Bitcoin ETFs recorded $430.2 million in withdrawals on November 5, followed by another $411.9 million on November 6. The negative trend continued throughout the November 9, 10, and 11 trading sessions.

BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the largest portion of the latest withdrawals, registering $269.7 million in net outflows during the most recent session.

Bitcoin ETF Outflows Put Market Recovery Under Pressure

The ongoing ETF withdrawals indicate that institutional demand remains insufficient to support Bitcoin’s recovery. US spot Bitcoin funds have lost approximately $1.44 billion over five consecutive sessions, with BlackRock’s IBIT contributing roughly 75% of the total outflows.

Despite the broader selling trend, some institutional investors continue to show interest. Morgan Stanley’s Bitcoin ETF attracted $9 million in fresh capital during the latest session, providing a modest positive signal against the wider withdrawal trend.

Glassnode’s Week 46 market report highlights another concern. Bitcoin has slipped below the short-term holder cost basis of $75,600, suggesting that investors who recently acquired BTC are now facing unrealized losses.

The analytics firm also points to a contraction in stablecoin supply alongside continued ETF withdrawals. These developments indicate that fresh liquidity is becoming increasingly limited across the cryptocurrency market.

Such conditions create additional risks for investors attempting to buy Bitcoin at lower prices. A temporary price increase could attract retail buyers, but a lack of sustained demand may allow sellers to regain control and push the market lower again.

Bitcoin Must Recover $75,600 to Reverse Bearish Sentiment

Bitcoin’s derivatives market provides further insight into the current trading environment. Futures open interest remains above $50 billion, while funding rates are still positive. This suggests that leveraged traders continue to maintain bullish positions despite the recent decline.

However, speculative activity is beginning to cool. Open interest has decreased as traders close positions, and a significant amount of leveraged long exposure around current price levels has already been flushed out.

The market now faces two potential scenarios. If spot buying returns, lower leverage could create healthier conditions for Bitcoin to recover without triggering another major liquidation event. However, another failed breakout could leave remaining leveraged traders exposed to additional downside.

The $75,600 level remains the immediate recovery target. A decisive move above this threshold would bring Bitcoin back above the short-term holder cost basis, potentially improving investor confidence.

If BTC establishes support above that level, a gradual advance toward $80,000 could indicate that buyers are regaining control. Conversely, a breakdown below $72,000 could expose Bitcoin to another test of the $70,000 support zone.

Nevertheless, not all market indicators point toward further declines. Two major wallet cohorts are showing accumulation activity, while overall selling pressure appears to be weakening. This suggests that some investors are taking advantage of lower prices to build positions ahead of a possible recovery.

The biggest risk for Bitcoin investors may not necessarily be another sudden crash. A temporary rally that attracts new buyers without sufficient underlying demand could create another bull trap, leaving late entrants vulnerable when selling pressure returns.