The post Bitcoin Capital Flow Declining Despite Price Rally – Bearish Divergence Signals Potential Market Shift appeared on BitcoinEthereumNews.com.

The cryptocurrency market is experiencing some concerning technical signals. Bitcoin’s capital inflows are continuing to decrease but have remained at elevated price levels. Ali, a market analyst, indicated that this situation is similar to the period of 2021-2022, when Bitcoin dropped more than 70% from its peak price. Additionally, the Realized Cap Net Position Change reflects that there has been a decrease in Capital Inflows forming Lower Highs against Capital Price forming Higher Highs. Understanding the Decline in Capital Flow Bitcoin‘s capital dynamics have told a very different story from its price action. The Realized Cap Net Position Change has been trending downwards despite price resiliency hinting that although existing holders have kept positions, additional capital injection into the market has slowed down significantly. New data from blockchain analytics shows this trend to be true. BlackRock’s inaugural Bitcoin ETF has faced more than $2.7 billion in outflows in five consecutive weeks, signaling massive institutional outflows. This comes at the same time as Bitcoin trades at near highs, relating to professional investors reducing exposure regardless of the relative stability of prices. Declining capital flows coupled with high price levels indicate that the existing holders are propping up the market instead of attracting new buyers. Therefore, any substantial selling pressure might start a rapid downturn because of the lack of sufficient buying appetite to take up the large entries. Echoes of 2021-2022 – History Repeating Itself The current market structure looks remarkably like the situation before Bitcoin’s major correction of 2021-2022. During that time frame, Bitcoin hit its all-time high of almost $69,000 in November 2021 when momentum indicators began to form lower highs signaling weakening strength regardless of the rising prices. The bearish divergence that developed in late 2021 was hence an early warning signal of the downturn that followed. The…

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Filed under: News - @ December 6, 2025 8:19 pm