Key Points
- Bitcoin’s price has been consolidating, demonstrating significant resistance between $98.7K and $99.6K, indicating potential correction before a bullish continuation.
- Institutional investors continue to accumulate Bitcoin, with the overall supply on centralized exchanges dropping by 123,108 units in the past 30 days.
The price of Bitcoin has been consolidating in the past fortnight after failing to reach the highly-anticipated psychological target of $100K.
The flagship cryptocurrency has encountered a substantial resistance range between $98.7K and $99.6K, suggesting a potential correction before a bullish continuation.
Technical Analysis of Bitcoin
In a four-hour timeframe, Bitcoin’s price against the US dollar has been forming a potential reversal pattern.
From a technical analysis perspective, Bitcoin’s price has been forming a potential double top along with a bearish divergence of the Relative Strength Index (RSI) in the short term.
Crypto analyst Michaël van de Poppe suggests that Bitcoin’s price is likely to retrace towards the support range between $85.3K and $89.5K.
Nonetheless, a potential breakout from the resistance level above $98K could propel Bitcoin’s price beyond $100K in the following weeks, with the next major target around $106k.
Institutional Investors Accumulating Bitcoin
Recent market data from CoinGlass reveals that the overall supply of Bitcoin on centralized exchanges has decreased by 123,108 units in the past 30 days to about 2.27 million.
More institutional investors are purchasing Bitcoins as a strategic reserve to hedge against inflation and fiat devaluations.
MicroStrategy Inc (NASDAQ: COIN) recently acquired 15,400 Bitcoins, valued at over $1.5 billion.
In related news, MARA Holdings, Inc. (NASDAQ: MARA), a leader in Bitcoin mining, announced the pricing of its offering of $850 million convertible senior notes due 2031.
US spot Bitcoin ETFs registered a total cash inflow of approximately $354 million on Monday, led by BlackRock’s IBIT.
As the US prepares to adopt a Bitcoin strategic reserve, on-chain data analysis by IntoTheBlock shows that long-term holders have been reducing their balances at a lower rate compared to previous bull cycles.
Altseason Reckoning
As Bitcoin’s price struggles to maintain initial bullish momentum, the altcoin industry has attracted more investors.
The rise of Ripple Labs-backed XRP to the third most valuable cryptocurrency has triggered the entrance of FOMO traders.
However, experts have warned crypto investors to keep an eye on altcoin projects with vibrant adoption as not all coins will shine ahead.
Furthermore, the creation of spot BTC ETFs, BTC layer two’s (L2), and strategic BTC reserves by institutional investors has made it impossible for crypto cash rotation to the altcoin market from Bitcoin.
Investors should watch out for crypto projects with impressive cash inflows through the stablecoins space and wrapped Bitcoin versions.
