Bull Trap Warning? Bitcoin ETFs Extend Outflow Streak for Five Consecutive Sessions

Bitcoin’s recovery is facing renewed pressure as institutional investors continue to pull capital from the market. US spot Bitcoin ETFs have reported five consecutive trading sessions of net withdrawals, recording approximately $1.44 billion in outflows between November 5 and November 11.

Bitcoin is currently trading around $73,500, struggling to break above the $75,000 resistance level. The continued ETF selling has raised concerns about whether the latest rebound represents a genuine recovery or the beginning of another bull trap.

The recent market movement has heightened these concerns. BTC briefly reclaimed $80,000 on November 4 before reversing sharply a day later. Since that decline, the cryptocurrency market has failed to regain meaningful upward momentum, leaving investors questioning whether those buying the dip have entered too early.

Bitcoin investment products registered $430.2 million in net outflows on November 5, followed by another $411.9 million the next day. Withdrawals persisted during the November 9, 10, and 11 sessions, extending the negative streak.

BlackRock’s iShares Bitcoin Trust (IBIT) led the latest withdrawals, with investors pulling $269.7 million from the fund in the most recent session.

Bitcoin ETF Selling Raises Questions About the Sustainability of the Recovery

Five consecutive sessions of ETF withdrawals suggest that institutional buying demand remains too weak to support Bitcoin’s latest rebound. US spot Bitcoin ETFs have collectively lost around $1.44 billion, with BlackRock’s IBIT accounting for approximately three-quarters of the total outflows.

However, institutional demand has not disappeared completely. Morgan Stanley’s Bitcoin ETF attracted $9 million in fresh investments during the latest session, offering a small indication that some investors continue to see opportunities in the market.

Glassnode’s Week 46 report presents another warning for Bitcoin bulls. The cryptocurrency has dropped below the short-term holder cost basis of $75,600, leaving recent purchasers with unrealized losses.

The analytics firm also highlights shrinking stablecoin supply and persistent ETF withdrawals. Together, these indicators suggest that new capital is struggling to enter the crypto market and provide the buying pressure needed for a sustained recovery.

This situation increases the risks for investors attempting to purchase Bitcoin during the downturn. A short-lived rally could attract retail buyers, but renewed selling may quickly reverse the gains and leave late entrants facing losses.

Bitcoin’s $75,600 Cost Basis Emerges as a Key Recovery Barrier

Derivatives market activity provides additional insight into Bitcoin’s current positioning. BTC futures open interest remains above $50 billion, while funding rates are positive, indicating that leveraged traders continue paying to maintain bullish positions.

However, speculative exposure is gradually declining. Open interest has contracted as traders reduce their positions, while a considerable amount of leveraged long exposure around current price levels has already been eliminated.

This leaves Bitcoin facing two possible scenarios. A return of strong spot demand could support a more sustainable recovery, with lower leverage reducing the likelihood of another major liquidation event. Alternatively, another failed breakout could expose remaining leveraged buyers to additional losses.

For now, $75,600 represents an important recovery threshold. Reclaiming this level would place Bitcoin above the short-term holder cost basis and potentially improve confidence among recent market participants.

A sustained move toward $80,000 would provide stronger evidence that buyers are regaining control. On the downside, losing the $72,000 support region could expose BTC to another decline toward $70,000.

Despite the bearish signals, some on-chain indicators offer a different perspective. Two major wallet cohorts are showing accumulation activity, while selling pressure has started to moderate. This suggests that certain investors are taking advantage of lower prices to increase their Bitcoin holdings.

Ultimately, another dramatic crash is not necessary to create a bull trap. Even a convincing price rebound can turn into a trap if fresh buying demand fails to support the rally, potentially leaving investors exposed to another downward move.