Bitcoin remains above the critical Fibonacci level of 78.6% at $91,780, trading at $94,000 after a 10% increase. Analysts predict potential movement towards $106,000 and $127,800 if bullish trends continue. Demand is rising due to increased institutional interest and notable influx in Bitcoin derivatives, hinting at sustained positive momentum. However, some short-term indicators suggest a need for caution.
Bitcoin shows solid performance above the crucial 78.6% Fibonacci level, sitting at $91,780. Currently, it trades at around $94,000 after a notable increase last week. The recent intraday recovery of 0.33% suggests that the bullish momentum might continue, raising questions about whether Bitcoin can break past its previous all-time high of $106,000 soon.
In the daily Bitcoin price analysis, the recent double bottom breakout has propelled the price above that Fibonacci level. Following a brief phase of consolidation, Bitcoin appears set for further upward movement. Notably, concerns over a potential ‘Death Cross’ between the 50 and 200-day exponential moving averages (EMAs) have diminished, as the 50-day EMA looks poised for a positive crossover with the 100-day EMA line.
However, it’s important to mention the slight pullback in momentum as reflected in the MACD and the histogram trend, signalling possible bearish indications in the short term. Should Bitcoin hold above the 78.60% level, projections suggest a target of $106,000, with an even more ambitious target of $127,800 should it experience a breakout beyond previous highs. Conversely, the support level is firmly held at $88,244 due to the 100-day EMA.
Analyst Ali Martinez has remarked on an upsurge in Bitcoin demand, supported by Glassnode data indicating that nearly 100 entities with over 1,000 BTC have entered the market since late January. This influx indicates strong accumulation, pushing the Bitcoin trend score close to its upper limits, signalling robust confidence from major holders.
Additionally, U.S. Spot Bitcoin ETFs reported substantial inflows last week, totalling 31,324 BTC. This marks the most significant influx since last November, suggesting a renewed interest from institutional investors looking to purchase more Bitcoin.
On the derivatives side, long positions have surged over the past eight hours. Current data from Coinglass shows that longs make up 53.74% of the market, pushing the long-to-short ratio up to 1.16. A positive funding rate of 0.0038% further encourages this bullish view among derivative traders, who are betting on an extended upward trend through the week.
Disclaimer: The information provided here is for informational purposes and should not be construed as financial advice. The views expressed may reflect the author’s opinions and are not necessarily representative of The Crypto Basic. It’s recommended to conduct due diligence before making investment decisions. The Crypto Basic is not accountable for any financial losses.
