Struggle Continues for Bitcoin as Price Breaks Key Support Level

• Institutional investors are consistently purchasing Bitcoin as per CryptoQuant.
• Bitcoin’s price is likely to test the $25,860 level of short-term support.

Bitcoin has shown significant negative momentum over the previous several weeks. Amid the severe assault, there has been a noticeable increase in institutional interest, which is widely anticipated to play a significant role in the next BTC rally. Based on analysis by CryptoQuant of wallet deposit and withdrawal records, it can be concluded that institutional investors are consistently purchasing Bitcoin.

Moreover, over the last year, Bitcoin reserves on non-US exchanges have increased by over 10%. On the other hand, Coinbase, Gemini, and Kraken, three major American crypto exchanges, have seen their Bitcoin holdings drop by 30% to over 50%.

Also, there has been a dramatic increase in the number of investors taking part in the Bitcoin futures market. Since November 2022, open interest in Bitcoin futures has increased to a new all-time high (ATH).

Further Decline Likely

Despite hopes of investors for a market turnaround, Bitcoin has fallen below $26,000 and is currently trading at $25,901. The Bitcoin price was consolidating around the critical $26,000 mark for some time before breaking out earlier today.

Bitcoin’s price is likely to test the $25,860 level of short-term support. If price manages to drop below the support level, it will signal a continuation of the downtrend all the way to $25,630. 

On the other hand, the $26,670 resistance level is projected to be reached if bulls are successful in pushing the price over $26,170. The price increase might go as high as $30,000 if a major trigger materializes, such as the U.S. Securities and Exchange Commission (SEC) approving a Bitcoin spot ETF.