Bitcoin hints at a potential breakout rally to $95k. However, is a correction to $85k looming before the bull run begins?
As Bitcoin momentarily hits $88,500, the broader market optimism spikes, with traders anticipating a price surge above $100,000. The institutional support, combined with the increased adoption of Bitcoin-featured products, supports the possibility of a bullish rally.
However, the short-term analysis warns of a potential correction before the bull run picks up pace. Will this short-term shakeout result in a retest of the $85,000 mark?
Santiment Warns of Potential Correction as Traders Turn Greedy
According to a recent tweet by Santiment, the crypto market is witnessing a rise in greed among traders as Bitcoin hits $88,500. Increased mentions of Bitcoin reaching the $100,000 mark, and even as high as $159,000, across social media reflect growing greed among the crypto crowd.
🤑 As crypto has bounced nicely in the second half of March, traders have swung the pendulum back toward mild greed. After showing major fear in late February and early March following two stints of Bitcoin dipping as low as $78K, it appears that this rebound to $88.5K has… pic.twitter.com/WGvmvKSv2X
— Santiment (@santimentfeed) March 25, 2025
Based on mentions of Bitcoin’s high prices from $100k to $159k, compared to low prices ranging from below $69k to $10k, Santiment highlights the current surge in greed. Furthermore, it suggests that this is a good time to book profits.
The market intelligence platform also warns that crowds often get these predictions wrong. Essentially, the spikes in higher price predictions may signal an upcoming drop.
Miners Hold BTC Amid Rising Optimism
As the market turns greedy, Bitcoin miners are holding onto their supply. According to a recent tweet by crypto analyst Ali Martinez, Bitcoin miners have avoided significant selling activity over the past 24 hours.
This has resulted in a significant increase in Bitcoin miner reserves. CryptoQuant data reveal that the BTC miner reserve stands at 1.8124 million BTC, worth nearly $159 billion.
#Bitcoin $BTC miners are holding tight! No significant selling activity has been recorded in the past 24 hours, pic.twitter.com/LBoU27RPci
— Ali (@ali_charts) March 26, 2025
BlackRock Drives Bitcoin ETFs Inflow
On March 25, the daily total net inflow of the U.S. Bitcoin spot ETFs was $26.83 million, marking the eighth consecutive day of inflows. Out of 12 ETFs, 9 recorded net-zero flows, while Bitwise and WisdomTree recorded outflows of $10.06 million and $5.13 million, respectively.
BlackRock recorded an inflow of $42.03 million, driving its cumulative net inflow to $39.83 billion. As of March 25, BlackRock’s net assets totaled $50.58 billion. The resurgence in demand for U.S. Bitcoin spot ETFs supports the possibility of a renewed bull run.
Bitcoin Could See $85k Retest Before A Breakout Rally
Despite the growing support and improving market sentiment, Bitcoin’s price action warns of a double top reversal. On the 4-hour chart, Bitcoin shows a bullish struggle to overcome the local resistance trendline.
This creates a double top pattern with a neckline at the 61.80% Fibonacci level at $86,146. Currently, Bitcoin trades at $87,306, taking a minor step back from the overhead trendline.
Furthermore, there is a convergence between the MACD and signal lines, signaling a potential negative crossover. This suggests a slight drop in bullish momentum.
As a result, the BTC price trend warns of a potential double top reversal, with a retest of a local support trendline near the $85,000 mark. However, the neckline at the 61.80% Fibonacci level could support a post-retest reversal.
In such a case, a bullish continuation is likely to result in a trendline breakout rally. The unleashed momentum could drive the BTC price to the 78.60% Fibonacci level near $95,000.
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.
