Bitcoin Price News: Rally at Risk as Investors Take $1.4 Billion Out of BTC ETFs
Author: Alejandro Arrieche
Published: May 22, 2026
Key Points
- Investors withdrew over $1.4 billion from Bitcoin ETFs in the past five days.
- The $77,000 area is identified as a critical support level.
- Mid-term outlook remains bullish, with expectations of BTC rallying back above $100,000 within 6 to 12 months.
Market Overview
Bitcoin (BTC) has experienced a decline of 3.5% over the past week, following a failed attempt to surpass the $83,000 mark. The current market sentiment is cautious, with investors wary of a potential "bear market rally" rather than a genuine recovery.
ETF Withdrawals and Market Sentiment
In a notable shift, Bitcoin ETFs reported net outflows of $1.4 billion over the last five days, indicating skepticism about the sustainability of the recent rally. This marks a significant change from a previous seven-week streak of positive inflows, coinciding with the appointment of Kevin Warsh as the head of the U.S. Federal Reserve.
Whale Accumulation and Futures Market Activity
Despite the outflows, large investors, or "whales," have been actively accumulating BTC, purchasing over 30,000 tokens valued at more than $2 billion in May alone. This follows a total of over $6 billion in purchases in the previous month, suggesting a strong bullish sentiment among these investors.
Additionally, open interest in the futures market has been rising, indicating a gradual return of traders to the market, although overall confidence remains low.
Technical Analysis and Buy Signals
On the weekly chart, a historical buy signal is being monitored, which has previously indicated the end of bear markets. The analysis suggests that $60,000 may represent the cycle's bottom. However, caution is advised as the market could potentially revisit lower lows.
A recent buy signal in the weekly RSI has emerged, which has historically preceded significant price rallies. The last three instances of the RSI dropping below 30 have led to substantial gains for BTC.
Short-Term Scenarios for Bitcoin
In the short term, two scenarios are being considered:
- Breaking below the $77,000 support, which could lead to a retest of the trend line support and potentially the cycle's lows at $60,000.
- Breaking above the 200-day EMA, which could propel BTC towards $85,000.
Regardless of the outcome, the weekly buy signal remains intact, suggesting that a recovery could still be on the horizon.
Conclusion
While the recent outflows from Bitcoin ETFs and the cautious market sentiment present challenges, the accumulation by whales and the technical indicators suggest that there may still be potential for a significant recovery in BTC prices. Investors are advised to stay vigilant and monitor key support levels and market signals.