Key Points
- Bitcoin’s price rallied above $97.3K, triggering a positive outlook in the altcoin industry.
- Robust fundamentals and market factors contributed to Bitcoin’s price rebound.
Bitcoin experienced a surge of over 4% on Wednesday, peaking at over $97.3K. By Thursday, during the early European session, the price had retraced to $95.3K.
Though Bitcoin is not completely safe from potential midterm corrections, its recent rebound has sparked a bullish outlook in the altcoin industry.
Market Data and Altcoin Industry
Recent data shows that the total crypto market cap has increased by over 2% in the last 24 hours. It is now around $3.5 trillion.
The price of Ethereum rebounded above $3.5K, which has led to an increase in crypto cash rotation from Bitcoin to the altcoin industry.
Bitcoin’s dominance has been decreasing, dropping from 61% to around 58% in recent days. Heightened crypto volatility has resulted in the liquidation of over $280 million from the leveraged cryptocurrency market, mostly involving short traders.
Factors Influencing Bitcoin’s Rebound
The bullish trend in Bitcoin’s price over the last 24 hours has been driven by strong fundamentals. For example, the United States spot Bitcoin ETFs witnessed a net cash inflow of approximately $103 million, with no issuers reporting a net cash outflow on Wednesday.
Despite BlackRock’s IBIT not registering a net cash inflow, Fidelity’s FBTC and Bitwise (BITB) reported net cash inflows of around $40.2 million and $48 million respectively. As a result, US spot Bitcoin ETFs now hold more than $104 billion worth of Bitcoins.
Bitcoin’s price also responded to rumors that Paul Atkins, a former SEC commissioner, might lead the agency. Atkins is seen as a pro-crypto leader with the potential to drive the Web3 industry with a pro-innovation agenda.
Bitcoin’s bullish trend also impacted altcoins, following the Israeli security cabinet’s approval of a ceasefire deal with Hezbollah in Lebanon. This signaled a stable market in the Middle East.
As a result, Bitcoin’s Open Interest surged over $62 billion, indicating increased demand, especially from whale investors. Additionally, the overall supply of Bitcoin on centralized exchanges decreased by more than 15K in the last 24 hours to under 2.3 million units.
Midterm Targets
Crypto analyst Michaël van de Poppe suggests that Bitcoin’s price might test $100K in the near term due to institutional FOMO. However, he warns traders that the price could drop to a support level above $85K before continuing its bullish momentum.
From a technical analysis standpoint, Bitcoin’s price is in a macro bull run as the weekly and monthly Relative Strength Indexes (RSI) have rallied above the 70% level.
