Will Bitcoin (BTC) avoid a crash to $90k this week as the institutions hold the balance?
Bitcoin remains below the $100,000 level and struggles to sustain a position above the $95,000 support level. With a bearish closing on Sunday, the intraday uncertainty in Bitcoin might lead to a bearish conclusion if the institutional support fails to resurface.
Will Bitcoin manage to create a morning star pattern for a bounce back this week? Or is a downfall to the $90,000 support level inevitable?
Bitcoin Price Analysis
With a 2.17% drop on Sunday, Bitcoin concluded the last week on a bearish note. Starting from the quick reversal from its recent all-time high of $108,364, BTC’s price dropped nearly 9% last week.
This resulted in a massive bearish engulfing candle, undermining the recovery run over the past two weeks. BTC’s price has created a low of $92,118, testing the 50-day EMA line.
Currently, BTC sustains above the $94,000 support level, avoiding a bearish closing below it. At press time, BTC is trading at a price of $94,884, with a minor growth of 0.33%.
Creating a doji candle at a crucial support level increases BTC’s chances of a comeback. The potential turnaround moments could create a morning star pattern with a recovery on Tuesday.
However, the RSI line dropping under the halfway level warns of an underlying weakness.
Bitcoin ETFs Marks Third Positive Week
During the bearish week, institutional support witnessed a gradual turnaround, reflecting increased volatility. Starting on December 12, the U.S. spot Bitcoin ETF registered a massive inflow of $636 million.
Following a bullish trend, the ETFs accumulated $493.95 million and $275.39 million in subsequent days. However, with the largest-ever outflow of $680 million on Thursday, institutional support took a quick hit.
By the end of the bearish week, institutional demand for U.S. Bitcoin ETFs had failed to recover but limited the outflow to $276.93 million. Overall, the past week remained bullish, with a net inflow of $449.25 million, marking its third positive week.
However, the $680 million outflow on Thursday ended a 15-day streak of positive inflows. Surprisingly, the bearish trend in U.S. spot ETFs has not lasted more than three days since December 9. Therefore, a potential resurgence in institutional support is likely this week.
Bitcoin Price Targets
As of press time, the Bitcoin trend is at a critical juncture near the $94,400 support level. The intraday Doji candle reflects uncertainty in the price trend.
However, the bearish influence from last week’s pullback suggests the potential for a breakdown. A bearish close below the $94,000 support level will likely test the dynamic 50-day EMA at $92,514. Price action indicates a possible retest of the $90,742 support level.
If institutional support resurfaces today, the intraday Doji candle could boost the chances of a bullish continuation tomorrow. This would form a morning star pattern and increase the likelihood of BTC testing the immediate resistance at $102,557.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
