Institutional Interest in Bitcoin Increased in April! Here’s What Analysts Expect Next!

Bitcoin continues to trade comfortably above the $100,000 level, supported by ongoing institutional demand and a resilient “buy the dip” mentality among investors, according to blockchain analytics firm Glassnode.

Bitcoin Holds Above $100K as Institutional Inflows Continue Momentum, Analysts Say

In its latest weekly report, Glassnode attributed Bitcoin’s steady climb from the April low of $75,000 to the recent high of $104,000 to institutional flows and a strong accumulation phase, particularly following the surge in demand for spot Bitcoin ETFs.

Between mid- and late April, daily net inflows into U.S.-listed spot Bitcoin exchange-traded funds (ETFs) averaged $389 million, with a single-day peak of $933 million on April 22, the highest since January 17. While ETF flows have since slowed to around $58 million per day, analysts noted continued institutional interest.

“ETF inflows have since calmed down, but flows suggest institutional interest in Bitcoin remains relatively strong,” Glassnode wrote.

Glassnode noted that Short-Term Holders (STHs) have been heavily accumulating BTC between $93,000 and $95,000 over the last 155 days. The recent price rally has pushed the STH Supply to P/E ratio to 9.0, meaning 90% of these holders are now in the money.

This wave of unrealized gains likely contributed to some profit-taking activity that analysts say cooled the rally and contributed to Bitcoin’s current consolidation between $102,000 and $103,700.

“The $93,000 to $95,000 range could serve as a strong support level in the event of a short-term market pullback,” Glassnode said.

Valentin Fournier, chief research analyst at BRN, warned that while technical indicators are not flashing red, there are signs of a “slight sell signal” as the weekend approaches.

“The market appears overbought, but there are no strong reversal signals. Since corporate activity typically declines over the weekend, the risk of a slide to the downside is increasing,” Fournier said in an email Friday.

Despite potential near-term headwinds, analysts maintain a cautiously optimistic outlook for Bitcoin, supported by strong institutional flows and solid technical support levels below current prices.

*This is not investment advice.