Bitcoin continued to hold steady around $95K on Tuesday, supported by steady institutional inflows and strong technicals. Bitcoin demonstrated impressive resilience by remaining comfortably above the $93K support level, despite enduring $380 million in ETF outflows. The poor performance is masking some underlying strength in the market. Investors are intently watching the cryptocurrency as it remains below $94,900, waiting for a bullish catalyst to send the token higher.
The cryptocurrency looks remarkably resilient, staying above the key 200-day moving average. It’s a closely followed critical technical indicator that traders pay attention to. Bitcoin’s Relative Strength Index (RSI) is still above 50, indicating the uptrend is yet to lose positive momentum. This unique confluence of factors creates a picture of hopefulness as Bitcoin continues through its recent consolidation phase.
Market Dynamics and Technical Indicators
Bitcoin's performance is not occurring in isolation. Daily trading volumes increased significantly, up 58% to $31.7 billion, reflecting an increase in market activity. Stablecoins were a huge part of this action, accounting for 93.34% of the total. Together their value soared to an incredible $82.4 billion. Total market capitalization of the entire crypto-market increased by 0.2% while standing at $2.98 trillion. This increase points to a greater overall stabilization throughout the crypto world.
"Bitcoin remains in a consolidation phase with $96,000 acting as key resistance," - Piyush Walke of Delta Exchange.
Funding rates for Bitcoin are currently positive, indicating that there is presently a long interest among traders. This state of affairs creates the perfect recipe for a short squeeze. In this familiar doomsday scenario, a price crash forces margin traders to capitulate and liquidate their positions, which only accelerates the vicious downward cycle.
Expert Opinions and Future Outlook
Naturally, market analysts are watching Bitcoin’s every twitch with a trained eye, observing important support and resistance levels.
"Bitcoin’s 8% weekly gain is driven by bullish momentum and major inflows, including Strategy’s recent 15,000 BTC addition. Support lies at $85K, while upside targets remain near $100K." - Sathvik Vishwanath of Unocoin.
"Funding rates are positive, reflecting long interest, though the risk of a long squeeze remains. The Crypto Fear & Greed Index has entered the greed zone at 60." - Vikram Subburaj of Giottus.
These perspectives highlight the competing forces at play in the Bitcoin market: strong bullish momentum balanced by the potential for a sharp correction.
