Bitcoin‘s upward trajectory has resurfaced following a challenging period marked by the impact of tariff news from Donald Trump. The spotlight now turns to the almost $100,000 psychological mark, a figure not seen since February. While investor optimism remains intact, the potential threat of a recession might alter this trend. This risk is heavily influenced by ongoing tax discussions between the U.S. and China. Furthermore, contradicting signals from on-chain metrics may contribute to amplified price swings.
What Sustainably Fuels Bitcoin’s Strength?
An influx of around $4 billion in purchases by large wallets and institutions has recently fortified Bitcoin. During a single week, Spot Bitcoin and Ethereum ETFs witnessed $3.2 billion in inflows, underscoring a continued inclination towards risk-taking. Particularly significant is the BlackRock Bitcoin ETF, which alone recorded nearly $1.5 billion in weekly inflows, achieving a peak for the year.
Is the Bitcoin Sell-Off Increasing?
The question of whether the Bitcoin sell-off is increasing is answered by the daily net outflow of approximately $39.79 million to off-exchange wallets, signaling investors’ preference to secure their holdings. This behavior alleviates selling pressures and backs the ongoing price resurgence.
Despite this, Glassnode’s data reveals long-term holders are seeing profit ratios close to 350%, implying a possible onset of profit-taking if Bitcoin surpasses $100,000. Within the last day, $25 million has been liquidated, with $14.12 million of that in short positions, showing the dominance of buying momentum despite an apparent resistance zone.
Which Technical Levels Are Crucial for Bitcoin?
Bitcoin is currently maintaining its position above the 20-day exponential moving average of $96,892. The Relative Strength Index (RSI) being positive reflects the current upward momentum. Overcoming the $99,500 resistance could allow Bitcoin to touch the $100,000 milestone and potentially push it to $103,000. Conversely, sellers are setting up defenses around $98,000 to counter each upward attempt.
If sellers prevail, the price will first seek support at the 20-day average. A failure here may direct focus to the 50-day average at $92,800. Crossing this boundary downward could stifle bullish prospects, prompting investors to exercise restraint.
The ongoing bullish momentum of Bitcoin persists despite current economic uncertainties, though the possibility of profit-taking remains a hurdle to breaching the significant $100,000 barrier.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-edges-closer-to-100000-mark