Bitcoin Struggles Below $95K as Institutional Demand and Whales Buy Up

Bitcoin is currently hovering below $95,000, with recent profit-taking by short-term holders affecting price momentum. Institutional demand and increased whale activity could signal a potential breakout rally. Key technical levels indicate a possible rise towards $100,000 if the price surpasses the 78.60% Fibonacci level. The market also sees positive ETF inflows contributing to demand. Recent profit booking from short-term holders and miners adds to market dynamics.

Bitcoin is dodging a breakout as it hangs just below the $95,000 mark. Trading at around $93,308, the cryptocurrency experienced a slight drop of 0.75% recently. Short-term holders and miners are cashing in profits, pausing the earlier bullish momentum. With institutional interest growing and whale purchases increasing, there seems to be some hope for a breakout rally ahead.

The technical view on Bitcoin suggests it is at a kind of crossroads near the critical $95,000 level. The daily chart indicates a double-bottom breakout pattern gaining strength, with BTC surpassing the crucial 100 EMA line. The price hit the 78.60% Fibonacci level at $94,959 after a steady series of six bullish candles. Now, with a pullback in progress, there is speculation that a retest might be on the cards.

Yet, a silver lining exists — the recent price action has been good for the 50-100 EMA lines, which could hint at a bullish crossover. The sustained positive momentum in the MACD further indicates that the bullish trend isn’t entirely lost. If Bitcoin breaks above the 78.60% Fibonacci barrier, analysts estimate it could soon push towards the $100,000 threshold, potentially reaching $106,184 at the 100% Fibonacci level. However, there’s also vital support at the 100 EMA, currently positioned at $87,850, which bears watching.

A surge in Bitcoin spot ETFs has also been noted, with these funds witnessing significant net inflows. Over just five days, inflows reached around $936 million, with a contributing $107 million on April 17 alone. Recently, BlackRock led the charge with a staggering $327 million influx, while ARK Invest also contributed a solid $97.02 million. Other ETF players, like Bitwise and Invesco, reported smaller, yet significant, contributions of $10.2 million and $7.5 million respectively. All these positive ETF movements are likely to escalate Bitcoin demand even further.

But it’s not just the ETFs driving Bitcoin demand. Whales and significant holders of Bitcoin are ramping up their portfolios. Data from Santiment shows that an 11% increase in Bitcoin’s price has sparked renewed buying from whales, with wallets holding between 10 to 10,000 BTC alone adding 19,255 tokens in just the last week. Despite this strong demand from bigger players, some profit booking is happening among short-term holders and miners, who may be causing the recent price fluctuations.

On this profit-taking front, CryptoQuant analyst Maartunn highlighted an eye-catching spike. Over a 24-hour period, short-term holders have added a whopping 47,428 BTC in profits to exchanges. This is one of the most significant profit-taking moments seen from short-term holders in recent weeks. In addition, early Bitcoin miners are rolling in profits too, with reported earnings of $18.57 million as Bitcoin challenged the $93,000 mark.

While this short-term supply influx might be fueling some pressure on prices, growing backing from established investors and crypto whales suggests that Bitcoin could ramp back up again soon. The ongoing tug-of-war between profit taking and institutional demand will be interesting to watch.

Disclaimer: This content is purely for informational purposes. It shouldn’t be taken as financial advice. The author’s opinions are their own and don’t reflect The Crypto Basic opinion. Readers are encouraged to conduct thorough research before making any investment decisions and The Crypto Basic doesn’t take responsibility for any financial losses.