Bitcoin Faces Potential Pullback After Strong Resistance, Says Swissblock

Crypto analytics firm Swissblock suggests a potential Bitcoin pullback is likely after hitting resistance in the mid-$90,000 range, with targets around $89,000. The firm highlights the need for Bitcoin to maintain support at $83,000 to stay bullish, while also noting recent institutional investments and warning about weaknesses in the Bitcoin Fundamental Index (BFI). The current trading price for Bitcoin is reported at $93,312.

Swissblock, a renowned crypto analytics firm, is suggesting that Bitcoin (BTC) might experience a pullback before making any further advances after recently climbing back to the $90,000 range. Their insights shared on social media platform X highlight strong resistance encountered in the mid-$90,000s, indicating a possible dip to as low as $89,000.

They specify, “The $94,000-$95,000 zone is clearly the resistance to beat. A pullback to gain momentum seems like the next logical move, but how far? The $89,000-$90,000 area is what could be tested next. Despite that, given Bitcoin’s structural strength, these dips could present buying opportunities.”

Moreover, Swissblock’s analysis points out that Bitcoin must maintain support at $83,000 for the bullish trend to continue.

In addition, there’s been a notable surge in buying of spot Bitcoin exchange-traded funds (ETFs) this week. As Bitcoin’s price approaches $94,000, institutional ETF investors appear to be bolstering this run. Recently, 17,000 BTC were purchased on April 22nd, marking the second-largest inflow day following significant outflows in February and March, raising questions about a potential buying spree ahead.

Furthermore, Swissblock is monitoring the Bitcoin Fundamental Index (BFI), an important metric that assesses both liquidity and the network’s growth. They caution that the BFI currently shows signs of weakness.

“If BFI doesn’t strengthen, the chances of sustainable upside dwindle, and we need to brace for potential downside pressure,” they warned. As it stands, Bitcoin’s current trading price is $93,312.

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