Bitcoin’s recent price movements show weakness as it lingers around $94,000 after failing to surpass $97,700. Dormant wallets are becoming active, raising concerns about potential selling pressure. Significant corporate acquisitions remain strong, but profit-taking by holders and bearish technical indicators suggest a cautious market outlook. Investors anticipate next moves around key resistance and support levels.
Bitcoin (BTC) is currently trading at about $94,000 as of Tuesday. After a failed attempt to breach the significant resistance level of $97,700 last week, investors are now facing a slightly worrying trend of profit-taking and increased activity among dormant wallets. Data from Santiment reveals that the movement of dormant wallets could lead to more tokens hitting exchanges, further ramping up selling pressure.
Last Monday, major corporations like Semler Scientific and Strategy acquired a total of 2,062 BTC—167 from Semler and 1,895 from Strategy—worth roughly $196.50 million. This acquisition occurred despite what some on-chain metrics indicate is a negative sentiment among Bitcoin holders. However, the corporations’ investment suggests a draw towards the crypto market remains strong.
Holders seem intent on cashing in, as seen in the spikes in Bitcoin’s Network Realized Profit/Loss (NPL) from Santiment, indicating that many are selling for significant profits. Such spikes have raised warnings; in the past, they have historically signalled a downturn in price when dormant tokens transition to exchanges, increasing the market supply.
Additionally, the Age Consumed index from Santiment also shines a light on the increased activity of dormant wallets, hinting at potential price declines ahead. The most recent spike is noteworthy, as it marks the highest increase since early February, suggesting a possible upcoming downtrend for Bitcoin’s price.
In corporate news, Strategy recently announced its purchase of 1,895 BTC for approximately $180.30 million, now holding 555,450 BTC in total. This comes directly after their quarterly earnings presentation, where they revealed plans for further BTC investment through a $21 billion market offering. This signals a continuous bullish trend among institutional investors toward Bitcoin as a strategic asset.
On the flip side, Riot Platforms, a crypto mining company, reported that it sold 475 Bitcoins for around $38.8 million to bolster operations whilst managing equity dilution concerns. Riot’s CEO stated that the move aims to limit future equity fundraisings and maintain a robust Bitcoin treasury strategy.
Institutional interest in Bitcoin does remain optimistic overall. Notably, inflows into US spot Bitcoin ETFs surged by $425.45 million on Monday alone, continuing a notable trend since late last week. If this momentum continues, it could support Bitcoin prices in the weeks ahead.
Despite the hopeful indicators from institutional demand, technical analysis presents a mix of signs for Bitcoin’s price trajectory. Following a failure to breach the critical $97,700 resistance, Bitcoin has faced nearly a 3% dip, now stabilizing around $94,000. Potentially stark bearish signals have emerged, such as a declining Relative Strength Index (RSI), which currently sits at 59, down from an overbought level of 70. Should it fall below 50, it could signal further losses.
Additionally, the Moving Average Convergence Divergence (MACD) indicator is approaching a bearish crossover, which would further indicate a downtrend. Conversely, if Bitcoin can manage to rebound past the $97,700 resistance, a push towards the psychological $100,000 benchmark is on the table.
In summary, while corporate interest and strategic acquisitions are painting a somewhat positive picture for Bitcoin’s long-term viability, immediate trends suggest a retrenchment in price due to profit-taking and increased supply from dormant wallets. Investors are now watching the technical indicators closely for the next major price movements and market decisions.
