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This week has launched the crypto market to an uneasy start, with the Bitcoin price crash approaching its £39,000 price level.

Bitcoin's attempted rebound from its 2024 lows may represent a deceptive temporary recovery rather than a genuine trend reversal. Analysts interpret the technical setup as a cross formation which, combined with massive ETF outflows, creates severe downside pressure that could push prices toward the £39,000 ($50,000) support threshold.

Wall Street's systematic dumping of Bitcoin ETFs over the past four weeks has extracted £4.3 billion ($5.4 billion) from these funds, Benzinga reported.

This suggests institutional abandonment, according to the outlet, and the selling pressure explains why the rebound lacks sustainability despite a brief price jump to £49,800 ($62,230) over the weekend.

Bitcoin Weekly Charts Illustrate an Alarming Pattern

The death cross pattern that's gradually forming on the weekly charts also represents a bearish technical signal visible across the 50-week and 200-week weighted moving averages. Historically, this signal preceded extended downtrends, validating current concerns about Bitcoin's collapse to lower support levels.

A death cross in Bitcoin occurs when the 50-day moving average drops below the 200-day simple moving average, typically signalling bearish momentum but often functioning as a lagging indicator that marks market bottoms, rather than extended crashes.

Bitcoin has declined more than 50 per cent from its October 2025 peak of £101,000 ($126,000) per coin, erasing over £50,500 ($63,000) in value. Such a massive drawdown from peak valuation indicates fundamental weakness in market structure rather than temporary volatility.

ETF cumulative net inflows have also dropped to £43.2 billion ($53.94 billion) with £60 billion ($75 billion) in current assets, falling dramatically from the £104 billion ($130 billion) peak. This 42 per cent reduction in managed assets signals institutional investors are permanently reallocating capital away from Bitcoin holdings.

What's Causing Bitcoin's Downtrend?

American investors have pivoted toward booming equity markets where the Nasdaq 100 jumped over 20 per cent, and the S&P 500 soared 10 per cent. Traditional stock performance dramatically outpaces Bitcoin's negative returns, making equity allocation more attractive for risk-adjusted returns.

The anticipated SpaceX IPO rumoured to have raised £120 billion ($150 billion) may have also siphoned capital from Bitcoin ETF holdings, as investors seek new opportunities. This capital rotation could explain the accelerated outflows beyond the standard risk-off selling patterns.

Crypto Whale Sells Bitcoin 'to Inoculate the Market'

After years of aggressive accumulation, Michael Saylor's Strategy Inc. also contributed to the recent dip when it confirmed that it had sold its Bitcoin, shocking market participants. Strategy Inc. currently holds 843,706 Bitcoins, valued at over £42.4 billion ($53 billion). That seems a sizeable piece of the Bitcoin pie, but it's still a significant reduction from the company's previous positions.

'We will probably sell some Bitcoin to pay a dividend just to inoculate the market and send the message that we did it,' said Saylor said in May, according to Forbes' report. He added that the plan was to 'buy Bitcoin with credit ... let it appreciate, and then ... sell bitcoin to pay the dividend.'

'Because Strategy recently sold 32 Bitcoin, contrary to the "never sell" mantra of the company, it's creating uncertainty even if the scale of the sale was modest,' RootstockLabs head Richard Green told the outlet.

Upcoming US consumer inflation data also set May's CPI at 4.2 per cent, threatening to weaken Bitcoin further as interest rate expectations remain elevated. Fed policy also tightens pressure on risk assets like cryptocurrency despite the 2 per cent divergence target.

Bitcoin has now broken below the 50 per cent Fibonacci Retracement level while forming consecutive lower lows and lower highs on weekly timeframes. This price action structure suggests sustained bearish momentum if the trend persists.

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