The price of Bitcoin is currently hovering around $84,156, reflecting a modest increase of approximately 2%. However, the flagship cryptocurrency has faced challenges in breaking through the critical resistance level of $85,000. Following a decline below $81,000 the previous day, traders are closely monitoring market movements, especially in light of increased selling pressure across the broader cryptocurrency landscape.
Recent data indicates that the US Spot Bitcoin ETF experienced a significant influx of approximately $240 million, suggesting renewed institutional interest. This comes after the ETF faced a notable outflow of $903.2 million on November 20, which unsettled many traders. Despite the recent influx, Bitcoin has struggled to maintain upward momentum, with its trading volume declining over 29% to $89 billion.
In the past 24 hours, Bitcoin has reached a low of $80,659 and a high of $85,503, further amplifying trader concerns. The reversal in fund flows into the US Spot Bitcoin ETF, which saw $238.4 million entering on November 21, has provided a glimmer of hope for a potential recovery. Notably, outflows from BlackRock”s IBIT ETF of $122 million have raised eyebrows, indicating fluctuating interest among institutional investors.
Experts remain cautiously optimistic, with predictions suggesting that Bitcoin could rebound to around $103,000 before facing another significant correction. Analysts emphasize the importance of retail trader activity alongside institutional inflows in determining the asset”s future trajectory. The upcoming US PPI data is also anticipated to provide critical insights into inflationary pressures, which could influence market sentiment.
Bearish sentiment is prevalent on social media, with traders expressing concerns over various market dynamics, including the AI bubble. However, some analysts argue that this negativity may signal a potential recovery opportunity. Key support levels are under scrutiny, with expert Ali Martinez noting the $77,000 mark as an essential threshold, given the accumulation of 171,617 BTC in that range.
As the market navigates this critical juncture, renowned analyst Scott Melker has highlighted the risk of a retest of the $103,000 level, followed by a potential drop to around $56,000. Melker”s analysis points to Bitcoin losing the 50-day moving average as support, a development that historically precedes a decline to the 200-day moving average.
With institutional interest reawakening, traders eagerly await signals from both retail investors and macroeconomic indicators. The interplay between these factors will be pivotal in shaping Bitcoin“s price movements in the near term.
