Bitcoin’s price remains below $90,000 amidst ongoing ETF outflows, high leverage, and significant short-selling. MicroStrategy continues to accumulate BTC, now holding 538,200 coins. Critical resistance levels in historical zones indicate potential market volatility, with a pivotal breakout necessary for bullish momentum.
The Bitcoin market is currently facing substantial bearish pressure, illustrated by a 40-day streak of ETF outflows, significant short-selling, and rising open interest that hit $30.5 billion. Trading sentiment remains negative, with 59.79% of traders betting against BTC as the cryptocurrency hovers below the critical $90,000 resistance level. This situation raises the question of whether Bitcoin can break free from these constraints and rise in value.
Over the past week, Bitcoin open interest surged from $27.2 billion to $30.5 billion from April 14 to 21, indicating a rise in speculative trading. During this timeframe, Bitcoin briefly approached $85,000, yet traders largely maintained short positions. This persistent bearish sentiment, paired with leverage spikes, suggests the potential for rapid market fluctuations, particularly in the face of unexpected price increases that could trigger a short squeeze.
Notable outflows were recorded from Bitcoin spot ETFs, contributing further to the bearish atmosphere. These outflows totalled $812.3 million as of April 19, with significant withdrawals from major products such as BlackRock’s IBIT and Grayscale’s GBTC. Additionally, market responses to geopolitical events, like tariffs on Chinese imports, exacerbated the outflows, compounding Bitcoin’s difficulties in surpassing the $90,000 level. Only Grayscale’s Bitcoin Mini Trust saw inflows during this period.
MicroStrategy, also known simply as Strategy, has remained committed to Bitcoin despite market turbulence, increasing its holdings by acquiring 6,556 BTC for $555.8 million within a week. This brings its total to 538,200 BTC, valued at approximately $46.83 billion, with an unrealised profit of over $10 billion. As a major institutional holder, MicroStrategy has prioritised Bitcoin accumulation, planning to invest over $20 billion more, showcasing confidence in the asset.
Resistance analysis for Bitcoin reveals significant price rejections in the $88,000 to $90,000 range, identified as key historical reversal zones. On April 21, Bitcoin tested crucial resistance levels between $87,331 and $87,571. A successful breach above $90,000 may suggest an advance towards the next resistance at $92,670, whereas failure to do so could initiate a downward trend, reflecting patterns observed in previous market cycles.
