Could Institutions Withdrawing Millions See Bitcoin? [BTC] at $20,000 next

Even though many cryptocurrencies are recovering today, Bitcoin continues to accumulate further losses. Interestingly, the institutions seem to have recognized this in advance and exited as soon as the first signs appeared.

Bitcoin brings everyone down

The high correlation that Bitcoin shares with the US stock market index shows its effect going both ways. While the S&P 500 Index (SPX) is down 8.5% over the past three trading days, Bitcoin is down more than 27.8% over the equivalent five days.

Most of it was in the last 24 hours alone. In fact, BTC was down 16.6% and trading at $22.3K at the time of writing.

However, this does not seem to be the end just yet as the next critical support stands at $20,067. Bitcoin last reached this level in December 2020. And BTC will definitely get there.

Bitcoin Price Action | Source: TradingView – AMBCrypto

Not just because price indicators are strongly pointing to a downtrend, but because this will be the only opportunity for BTC to rally. A bounce off $20,067 will give it enough lift to return towards $25,000, the base of the Fibonacci retracement.

Towards the start of the downtrend, BTC surged above the 23.6% Fib level at $30.7k. Had it successfully achieved this, the king coin would have traded closer to the 50-day simple moving average.

These crucial supports would have prevented a sinking, but now bitcoin has a couple of weeks before testing that.

Investors, on the other hand, particularly institutions, have been vigilant in their movements. Even before the crash could take shape, they managed to get their money out of the asset.

Bitcoin institutional outflows | Source: CoinShares

During the week ending June 10, approximately $56.8 million was withdrawn from institutions, along with Ethereum observing $40.7 million of outflows. Of course, the days that followed would have seen higher discharges and this is evidence of that.

In the future, retail investors could start withdrawing their investments. Especially as realized gains fell to a 19-month low after the crash.

Bitcoin Realized Gains | Source: Glassnode – AMBCrypto

BTC supply on exchanges has yet to pick up, suggesting investors have refrained from selling for now. This bodes well if Bitcoin intends to rally anytime soon.

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