Bitcoin Updates: Positive Technical Indicators for Bitcoin Face Off Against Declining Interest from Institutional Investors
- Bitcoin forms bullish double-bottom pattern, targeting $110K as technical indicators and macroeconomic relief align for a rally. - Institutional demand cools, with BlackRock's ETF inflows plummeting and negative on-chain demand threatening $100K support. - Cathie Wood cuts 2030 BTC forecast to $1.5M amid stablecoin competition, while Fed rate cuts and liquidity improvements bolster short-term optimism.
Bitcoin's recent price movement has reignited optimism, as both technical signals and broader economic factors suggest a possible upward surge. The cryptocurrency has established a bullish double-bottom formation, with a weekly candle closing above significant support, indicating a transition from a bearish phase to a bullish one.
The latest rebound has been supported by macroeconomic developments, notably the U.S. Senate's bipartisan agreement to end a 40-day government shutdown. This move reduced systemic risks and improved investor confidence, with
From a technical perspective, Bitcoin's 50-day simple moving average (SMA) at $104,149 now acts as short-term support, while the RSI at 67 reflects strong momentum. Traders are keeping an eye on the 38.2% Fibonacci retracement at $109,660, a key resistance level. Surpassing this barrier could pave the way for a move toward $110,000–$112,000, continuing the medium-term rally
Institutional interest, however, appears to be waning. Inflows into BlackRock's spot BTC ETF have dropped sharply from over 10,000 BTC weekly to under 1,000 BTC, reflecting a more cautious market stance. Data from Glassnode and CryptoQuant show that current demand is not enough to offset selling pressure, with negative net demand coinciding with previous local lows
Nevertheless, broader economic factors remain supportive. Expectations of Federal Reserve rate cuts and improved liquidity conditions have strengthened Bitcoin's recovery outlook. Meanwhile, speculation about a major BTC purchase by MicroStrategy founder Michael Saylor has added to the bullish sentiment
Some experts, however, are less optimistic about the long-term outlook. Cathie Wood of ARK Invest recently revised her Bitcoin price projection for 2030 down from $2.4 million to $1.5 million, citing the rapid rise of stablecoins in developing economies. She noted that stablecoins are increasingly taking on roles once reserved for Bitcoin, such as serving as a store of value in inflation-prone countries like Venezuela
Currently, Bitcoin is trading around $101,724, with market participants watching for liquidity sweeps between $98,500 and $99,700 before aiming for $105,000
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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