# Bitcoin Price Drops Below 365-Day Moving Average

**Published:** 2026-09-06T07:28:41.295Z  
**Topic:** Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/75ffe271-cba2-4014-9947-78da73578000

Bitcoin has fallen below its 365-day moving average, signaling a deepening bear market. Track key support levels and shifting institutional ETF flows.

Bitcoin has dropped further into bear territory, breaking below its 365-day moving average for the first time since March 2022 [4]. The decline marks a significant shift in market structure, as the asset has lost 23% of its value over the 83 days since breaking that key technical level in November 2025 [4].

| At a glance | |
|---|---|
| Price Trend | Below 365-day moving average |
| 3-Month Performance | 23% decline |
| Key Support Zone | $60,000 – $70,000 |
| Primary Catalyst | Reversal in institutional ETF flows |

## Institutional demand and liquidity shifts
The current downturn is driven by a sharp reversal in institutional appetite, with U.S. spot Bitcoin ETFs transitioning from net buyers of 46,000 BTC last year to net sellers in 2026 [4]. This shift has created a demand gap of approximately 56,000 BTC compared to the previous year [4]. On-chain data from CryptoQuant confirms this structural weakness, noting that Bitcoin’s Bull Score Index has dropped to zero, the lowest possible reading [4].

Liquidity conditions are also tightening across the broader ecosystem. Tether’s USDT stablecoin market capitalization has recorded its first contraction since October 2023, with 60-day growth turning negative by $133 million [4]. Furthermore, annual spot demand growth for Bitcoin has collapsed by 93% over the past four months, falling from 1.1 million BTC to 77,000 BTC [4].

## Technical outlook and market positioning
While Bitcoin has struggled to maintain momentum, recent exchange data shows mixed signals. Binance recorded a net outflow of more than 9,000 BTC on Tuesday, the largest single-day tally since November 2024 [1]. While some analysts suggest this indicates that short-term supply pressure is easing as coins move to self-custody, others caution that negative netflows do not automatically confirm a new uptrend without accompanying spot demand and stable price structure [1].

Market participants are now focused on the $60,000 to $70,000 support zone, a range that encompasses the previous cycle’s all-time high of $69,000 and estimated production costs for miners [4]. Veteran trader Peter Brandt has described the current price action as "campaign selling," suggesting that the downward pressure is being driven by large market participants rather than retail panic [4].

## What to watch
*   **Support levels:** Monitor the $60,000–$70,000 range, which analysts suggest could take several months to fully test [4].
*   **ETF flows:** Watch for a reversal in U.S. spot Bitcoin ETF activity, as the current net-selling trend remains a primary headwind for price recovery [4].
*   **Coinbase Premium:** Observe the price difference between Coinbase and global exchanges; the premium has remained negative since mid-October, signaling weak U.S. retail participation [4].

The current bear market is off to a weaker start than the 2022 cycle, leaving Bitcoin vulnerable to further downside in the absence of a return of sustained spot buying [4]. Whether the asset can stabilize above the $60,000 threshold remains the central question for the coming months [4].

## Sources
1. Cointelegraph — [Bitcoin analysis eyes ‘serious volume’ after Binance sees 9K BTC daily outflow](https://cointelegraph.com/markets/bitcoin-analysis-eyes-serious-volume-after-binance-sees-9k-btc-daily-outflow)
2. Cointelegraph — [Gold hits 6-week highs on China demand as Bitcoin ignores fresh S&P 500 record](https://cointelegraph.com/markets/gold-hits-six-week-highs-on-china-demand)
3. Crowdfundjunction — [Bitcoin Slips Deeper Into Bear Territory, Cryptoquant Analysis Shows](https://crowdfundjunction.com/blog/bitcoin-slips-deeper-into-bear-territory-cryptoquant-analysis-shows/)
4. Ainvest — [Bitcoin Slips Deeper Into Bear Territory, Cryptoquant Analysis Shows](https://www.ainvest.com/news/bitcoin-slips-deeper-bear-territory-cryptoquant-analysis-shows-2602-85/)

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Cite as: TrendWatcher, "Bitcoin Price Drops Below 365-Day Moving Average", https://www.trendwatcher.in/article/75ffe271-cba2-4014-9947-78da73578000