Bitcoin Hits $94,700: Can It Break the $95K Resistance?

Bitcoin has reached a new high of $94,700, with the next significant resistance point at $95,000. Analysts suggest a pullback to the $90,000 support level might be necessary before a breakout occurs. There’s a notable rebound in ETF demand and decreasing supply on exchanges, which could benefit prices. The sentiment in futures markets remains cautious, although historical trends indicate potential for a rally. Bitcoin has also crossed its 200-day SMA, signalling bullish momentum.

Bitcoin, the leading cryptocurrency, has hit a new range high of $94,700, its highest value since early March. Analysts are now looking at a significant resistance point at $95,000, with some predicting a potential drop to the $90,000 support zone. According to Swissblock, the $94K-$95K range is crucial for BTC to overcome. They suggest a pullback might be necessary before making another upward push.

Popular analyst AlphaBTC agrees, stating Bitcoin might consolidate between $93,000 and $95,000 before moving toward the psychological threshold of $100,000. This optimistic scenario is supported by a notable rebound in demand for Bitcoin exchange-traded funds (ETFs), with inflows hitting levels unseen since January 2025 and more than 500 times the daily average.

On April 22 and 23 alone, almost $2 billion flowed into spot Bitcoin ETFs according to SoSoValue, signalling stronger institutional interest. Market analyst Jamie Coutts explains that with global liquidity recently reaching record levels, the stage is set for potential asset price surges, including Bitcoin.

Another encouraging sign is the reduction in Bitcoin supply on exchanges, which has seen a dramatic decline since the year’s start. Total BTC transferred to exchanges fell from nearly 98,000 on February 25 to around 45,000 on April 23, according to CryptoQuant. Analyst Axel Adler Jr. noted that fewer addresses were depositing BTC, indicating a growing trend towards HODLing and decreasing selling pressure.

However, while Bitcoin’s price has surged back to the highest levels in weeks, the sentiment in futures trading remains a bit cautious. Funding rates for Bitcoin’s perpetual futures were negative between April 22 and April 23, despite an 11% price increase, as reported by Glassnode. Often, these negative rates can lead to a short squeeze if prices continue to rise.

Darkfost from CryptoQuant highlighted that a similarly negative funding rate divergence has historically preceded considerable price jumps for Bitcoin, indicating a potential rally ahead

Another positive indicator is Bitcoin’s movement past the 200-day simple moving average (SMA), currently at around $88,690. Historically, crossing this key level can trigger massive gains. If Bitcoin maintains support above this threshold, the next target is clear: breach the $95,000 resistance and aim for the all-time high above $109,000 from January.

It’s clear, for Bitcoin traders, the next few days could be pivotal. But as always, potential investors should exercise caution, as markets are fickle and involve risks. Conduct thorough research before making any investment decisions, folks!