Bitcoin is trading near one of its most closely watched long-term technical levels after a sharp selloff pushed the cryptocurrency toward the low-$60,000 region. The decline comes at a time when spot Bitcoin exchange-traded funds (ETFs) are experiencing an extended period of capital outflows , while liquidations across the crypto market have surged to their highest levels in months. At the time of writing, Bitcoin BTC was trading at around $63,226, down 5% over the past 24 hours and 13.4% over the previous seven days. Earlier today, the digital asset briefly fell to $61,556, bringing it into contact with the 200-week simple moving average, a technical indicator that has historically played a significant role during major market downturns. Bitcoin ETF outflows hit $3 billion One of the biggest challenges facing Bitcoin is the persistent withdrawal of capital from spot Bitcoin ETFs. The market has recorded an unusually long streak of ETF outflows, marking the weakest period for institutional demand since spot Bitcoin ETFs became a major source of buying activity. According to Coinglass data , Bitcoin ETFs have recorded more than $3 billion in net outflows over the past 10 days. During the rally that pushed Bitcoin to record highs in 2025, ETF inflows helped absorb large amounts of supply entering the market. That trend has now reversed. The prolonged outflow cycle has reduced a key source of demand at a time when market sentiment has already weakened. Institutional investors who previously provided steady buying support have become more cautious as broader financial markets navigate uncertainty surrounding interest rates, economic growth, and risk assets. Liquidations accelerate the decline The selloff has also been amplified by heavy liquidation activity across the cryptocurrency market. As Bitcoin dropped toward $61,500, leveraged traders were forced out of positions at an increasing pace. Over the past 24 hours, more than $822 million worth of long positions have been liquidated according to Coinglass . Liquidations occur when traders using borrowed funds can no longer meet margin requirements, triggering automatic position closures by exchanges. The latest wave of liquidations ranks among the largest seen in the market in several months. The forced selling created additional downward pressure on Bitcoin and other digital assets, accelerating losses during periods of heightened volatility. As prices fell, forced selling added to the downward pressure, triggering further liquidations and creating a self-reinforcing cycle. The feedback loop intensified market weakness and pushed Bitcoin toward key support levels faster than many traders had expected. The sharp decline has also led to growing debate about whether Bitcoin is entering a deeper phase of its current market cycle or approaching a major bottoming area. 200-week trendline comes into focus While ETF outflows and liquidations have dominated headlines, technical analysts are paying close attention to Bitcoin's interaction with the 200-week moving average. Bitcoin price tested the 200-week simple moving average The indicator is currently positioned around $61,840 and has historically served as one of Bitcoin's most important long-term support levels. During previous bear markets, Bitcoin eventually found stability around this trendline before beginning longer-term recoveries. The significance of the current test is difficult to ignore, as it comes after months of declining prices and weakening sentiment. At the same time, several momentum indicators have fallen to levels not seen in years, highlighting the extent of the recent selloff. The market is now closely watching whether Bitcoin can maintain support above the trendline. Holding above this area would keep attention focused on a potential stabilization phase. However, a decisive break below the trendline would likely shift attention toward lower support zones beneath the $60,000 mark. The post Bitcoin price hits 200-week trendline amid record ETF outflows and liquidations appeared first on Invezz