Bitcoin ETFs saw a record $2.7 billion in outflows this week, signaling an impending bear market. Corporate Bitcoin holders are feeling the pain, and liquidations are spiking all across the crypto industry.

Additionally, the Federal Reserve Bank of Atlanta predicted that the US GDP would decrease by 1.5% in Q1 2025, fueling further economic pessimism.

Is Bitcoin Heading for a Bear Market?

The US spot Bitcoin ETF market, which grew so quickly in its first year, is seeing massive outflows. Earlier this week, it hit a new record for outflows, approaching $1 billion. Now that we have most of the week’s data, it reflects the growing concerns among institutional investors.

Over the past week, Bitcoin ETFs had $2.7 billion in net outflows, a troubling sign of a bear market. For comparison, this is the largest weekly net outflow since March 2024.

Fears of a bear market are gripping the entire crypto space, even hitting corporate Bitcoin holders. Strategy (formerly MicroStrategy) recently spent nearly $2 billion on BTC, and this didn’t help its stock price.

Today, trade data shows that it has fallen 57% since last November. Metaplanet fell 54% from its peak, and Tesla has been falling too. All these firms hold huge amounts of Bitcoin.

Bitcoin may be feeling the brunt of this potential bear market, but liquidations are spiking all across the crypto sector. According to the latest data, nearly $1 billion was liquidated in the last 24 hours. Traders are currently showing Extreme Fear, the lowest level since the 2022 FTX collapse.

A few prominent figures are looking at the brighter side. Michael Saylor urged the community not to panic sell, telling his followers to “sell a kidney if you must, but keep the Bitcoin.”

Arthur Hayes, former CEO of BitMEX, amended his recent prediction that BTC will drop and bounce back. However, he maintains that Bitcoin will rebound after a bear market.

“We are making lower lows in this current wave. I was tempted to add risk this morning, but looking at this price action I think we have one more violent wave down below $80,000, most likely over the weekend, then crickets for a while. Hold on to your butts!” Hayes claimed via social media.

Dark economic portents have been present for a few days now, and a market correction seems inevitable. This afternoon, the Federal Reserve Bank of Atlanta claimed that the US GDP is on track to decline by 1.5% in Q1 2025.

Even a disproven rumor could cause a lot of problems. Overall, the current macroeconomic factors point towards a short-term bearish cycle for Bitcoin and the entire market.

The crypto market has suffered a massive downturn, wiping out $160 billion in total market capitalization over the past 24 hours. This sharp decline has caused PI to shed 24% of its value.

However, technical indicators suggest that a rebound could be on the horizon for the popular altcoin. 

PI’s Market Decline Shows Signs of Seller Fatigue 

PI’s hourly chart reveals that its Relative Strength Index (RSI) is near the oversold territory, signaling that selling pressure may be reaching exhaustion. As of this writing, this momentum indicator is downward at 31.36.

An asset’s RSI measures its overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a retracement. On the other hand, values under 30 suggest that the asset is oversold and may witness a rebound.

At 31.36, PI’s RSI signals that the token is nearing oversold territory. This suggests weakening selling pressure and the potential for a price rebound if buyers step in.

In addition, PI’s price just broke below the lower line of its Bollinger Bands indicator, confirming sellers’ exhaustion. This indicator is a volatility marker consisting of a middle-moving average line and two outer bands that expand and contract based on price fluctuations. 

When an asset’s price breaks below the lower band, it signals that it is oversold and trading at an extreme deviation from its average price. If buying pressure increases, this can indicate a possible rebound or trend reversal.

PI Teeters at Crucial Level—Breakout or Breakdown Ahead?

A resurgence in PI demand could trigger a rebound toward its all-time high of $3, which was reached on Thursday. This represents a 44% uptick from its current value of $2.08. However, for this to happen, PI must first break above the resistance formed at $2.56.

Conversely, if the downtrend continues due to a lack of new demand for PI, its price could plummet toward $1.62. 

XRP has experienced a significant price pullback recently, largely driven by the broader bearish market trend affecting major cryptocurrencies. 

Despite this, whales have been accumulating large amounts of XRP, which may signal the potential for a price reversal. Historical trends suggest that a rally could be on the horizon.

XRP Whales See A Bullish Future

Whale addresses holding between 10 million and 100 million XRP have added over 300 million XRP, totaling $609 million in the last few days. The accumulation occurred after these whales previously sold off their holdings when prices were higher, locking in profits.

Now, with the market in a slump, they are buying back in, signaling a high level of confidence in XRP’s future price movements.

The actions of these whales suggest a belief in an eventual price recovery. Their purchasing behavior is typically a strong indicator of market sentiment, particularly when they accumulate during dips.

The relative strength index (RSI) for XRP is currently in the oversold zone, a critical technical signal. This is the first time in seven months that the RSI has dropped to such low levels. Historically, such drops have been a reversal trigger for XRP, with the last similar occurrence leading to a 47% rally.

The current RSI value suggests that XRP may be oversold and due for a correction, which could result in a price rebound. Given that this level has often preceded significant price surges in the past, the likelihood of a similar outcome increases. If the trend continues, XRP could reach up to $2.98.

XRP Price Has A New Target

XRP is trading at $2.03, down 24% over the past week. The Ripple token is currently holding above the $1.94 support level. XRP is attempting to breach the resistance at $2.33 with the aim of flipping this level into support. If successful, the move would mark the beginning of a potential rally.

With the technical indicators suggesting a bullish reversal, XRP could target $2.33. Further movement above this level would bring it closer to $2.70. Surpassing this resistance would drive the price toward $2.95, which aligns with the targets suggested by the RSI data and recent whale activity.

However, if XRP fails to breach $2.33 and remains in consolidation below this level, the price could stagnate between $1.94 and $2.33. This would invalidate the bullish outlook and delay any potential recovery.