With Bitcoin rising back to hit $100k for the sixth time, will BTC rally to challenge the $108k resistance zone?
As the total crypto market cap stabilizes near $3.19 trillion, Bitcoin is fluctuating back near the $100,000 mark. Currently, BTC trades at a market price of $99,174, with an intraday gain of 2.25%.
Despite the recovery last night, which helped relieve bearish pressure, institutional support remains weak. Will this result in another drop in Bitcoin to the $90,000 level? Let’s explore.
Bitcoin Technical Overview
In the daily chart, the BTC price trend reveals a strong bullish angle, with a long tail, as BTC’s price bounces off from the $91,530 level. The 24-hour high registered at $102,569.
However, the bullish revival fails to hold the momentum as it breaks below the $100,000 mark. Nevertheless, despite the increased volatility, BTC’s price trend maintains a positive outlook as per the super trend indicator.
This suggests that Bitcoin may challenge the previous supply zone at $108,000. Additionally, the trend strength index has dropped into negative territory.
Institutional Inflows Decline Amid Rising Fear
Despite several bullish signals on the daily price chart, institutional investments in Bitcoin fail to resurface. The daily total net inflow of U.S. spot Bitcoin ETFs on February 3 recorded a negative $234.54 million.
The sole purchaser of Bitcoin remains the Grayscale GBTC ETF fund, with an inflow of $8.02 million. The majority of offloading came from Fidelity, which dumped $177.64 million worth of BTC, followed by outflows of $50.75 million from ARK and 21Shares.
Similarly, VanEck and Bitwise saw outflows of $8.63 million and $5.54 million, respectively. The remaining six Bitcoin ETF funds recorded no net inflow.
Will Bitcoin Rise Again?
With the lower price rejection sustaining a positive trend above the local support trend line and Bitcoin reclaiming the $100,000 mark for the sixth time, Bitcoin will likely continue its uptrend.
Moreover, as the trend strength index gradually reverses, Bitcoin may challenge the $108,000 supply zone.
Based on previous analysis, this could propel Bitcoin to $112,000, with a further price target of $122,000. On the flip side, key support for Bitcoin remains near the $95,000 level, with additional support at the local trend line near $93,500.
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.
