Bitcoin price eyes the $86,000 level as the asset sharply recovers from key support, while a shift in market sentiment toward bullish bets and Michael Saylor’s latest post support this optimism.
A sharp recovery in Bitcoin price is raising hopes of a trend reversal, as BTC has rallied notably from the key support level of $81,000. However, over the past two weeks, the crypto market has moved sideways, during which U.S. spot Bitcoin ETFs have recorded two consecutive weeks of outflows.
As per SoSoValue data, Wall Street recorded weekly outflows of $228.58 million and $681.10 million from spot Bitcoin ETFs. These outflows are indicative of fading institutional interest in the underlying asset.
Despite these notable outflows, Bitcoin’s price recovered sharply, avoiding the liquidation of $485 million worth of positions at the $80,370 level, as per derivatives data. On Monday, Bitcoin posted a 1.05% gain over the past 24 hours, rising to $82,600 from $80,696, a level below a key support.
Meanwhile, crypto investors and traders displayed strong participation, as was evident from trading volume jumping over 65% to $20.86 billion during the same period. Bitcoin’s price recovery, coupled with a massive surge in trading volume, suggests that the market is likely to witness continued upward momentum in the coming days.
Following this price recovery, market sentiment appears to have shifted significantly, as per data from the derivatives platform CoinGlass. The data shows that $81,990 on the lower side and $82,936 on the upper side are two key price levels where traders have built $141.51 million worth of long positions and $97.58 million worth of short positions, respectively.
As these levels are close to the current price, the risk of liquidations increases, and positions could be liquidated if Bitcoin's price moves in either direction. Now, the question is: What’s next for Bitcoin’s price? Will it continue to recover, or is a potential decline ahead?
Looking at TradingView’s daily chart, BTC’s short-term outlook appears bullish, suggesting that its upward move could continue in the coming days. The chart shows that the asset plunged toward the key support level of $81,000 over the weekend and even fell below it.
However, a sharp price recovery has shifted market sentiment and suggests that the upward rally could continue in the coming days. Based on the current price action, if Bitcoin’s price remains above the $81,000 level, it could rally by 4.50% and reach $86,650. However, if market sentiment shifts and the price falls below $81,000, the asset could decline by 7% and drop to $76,000 in the coming days.
At press time, BTC’s Chaikin Money Flow (CMF) reads -0.11, indicating selling pressure and net capital outflows from the asset. Meanwhile, the Average Directional Index (ADX) stands at 21.44, below the key threshold of 25, indicating a lack of trend strength. These indicators suggest that the current upward momentum is weak and might not be sustained in the coming days.
Besides all these developments, the key factor currently supporting a bullish outlook for Bitcoin is Michael Saylor’s recent cryptic post on X (Formerly Twitter). In the post, Saylor stated, “We found room for more orange.”
This post suggests that Strategy is planning to buy more Bitcoin. So far, the firm holds 848,250 BTC, and Saylor’s latest post hints at another potential purchase.
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