Bitcoin is rallying towards $100,000 driven by increased spot demand, ETF inflows, and reduced supply. Institutional interest is present, with significant fund movements into major ETFs. Technical indicators show bullish momentum after breaking key resistance levels. However, caution remains necessary as profit-taking pullbacks could occur.
Bitcoin is making waves in the crypto market, with recent increases pushing its value up, particularly eyeing a big $100,000 mark. Recent conditions show a surge in spot demand and a notable influx of funds into exchange-traded funds (ETFs). These factors, combined with dwindling supply on exchanges, point to a bullish trend that could bring more institutional investors back into the fold.
After a pretty rough start to April, Bitcoin is currently testing the $97,000 threshold—this is something to keep an eye on because some believe it isn’t just a simple bounce. There’s chatter that this movement could set the stage for a stronger uptrend. Fund flows into ETFs, especially the iShares Bitcoin Trust ETF (NASDAQ:IBIT), have been substantial, with last week seeing a hefty $1.5 billion influx. This all aids liquidity while drawing supply off the market, thus potentially increasing pressure on Bitcoin prices.
In stark contrast to the price surges we’ve seen in past years, notably 2021 and 2023, this uptick in spot demand seems to be underpinned by a more stable market. Traders are shifting their focus from high-leverage derivatives to direct purchase of Bitcoin. Meanwhile, an interesting trend has emerged with Bitcoin’s supply on exchanges dropping to the lowest level in five years as large investors snapped up over $4 billion in Bitcoin. Furthermore, long-standing investors have added an impressive 150,000 BTC to their portfolios, squeezing existing supply and helping ratchet prices upwards.
On the mining side, Blockware has noted that the average costs for miners are nearing current Bitcoin prices. This could be telling, as historically, when production expenses approach market prices, a bull rally often follows after market lows. This is a big deal for scoopers and holders alike, as it may suggest the start of something significant in the market.
As we navigate through 2025, macroeconomic factors certainly come into play. As it stands, US trade policies have introduced some selling pressures, yet it seems central banks might be leaning back into more accommodating monetary policies. This is directing capital flow towards alternative assets like cryptocurrency. ETFs have simplified access for new capital, speeding up its impact on Bitcoin prices.
Looking at the technicals, last week saw Bitcoin break out from crucial support levels, marking a significant change in momentum. It has successfully crossed important resistance levels, especially around the $93,000–95,000 range, with the next key point being close to $99,500. If the trend holds, Bitcoin could very well test the $100,000 mark, with some analysts even suggesting a movement towards $106,000 could be on the cards. Short-term moving averages have also shifted upward, which is indeed a bullish sign.
That said, traders should be prepared for potential profit-taking pullbacks or corrections. The $94,200–94,500 range could serve as a preliminary support level if things don’t go smoothly. Should that support give way, we could see Bitcoin dipping further to about $90,500–91,000. To sum it all up, Bitcoin seems to have broken from its downtrend after crossing $83,000 and moving up to $87,000 solidifies signs of a trend reversal. This uptrend might just hold as long as Bitcoin remains above the pivotal $95,000 mark, with the $100,000 level looming large.
