Bitcoin has been on a rollercoaster ride lately, with its price dropping due to Donald Trump’s tariff plans, causing a market sell-off. However, the cryptocurrency is now making a strong comeback and is approaching the $100,000 mark, its highest level since late February. But concerns about a recession could potentially slow down this momentum unless the U.S. and China can come to an agreement on tariffs soon. Additionally, the mixed on-chain signals could lead to increased volatility as Bitcoin nears the $100K level.
Bitcoin’s on-chain metrics are creating mixed sentiment among investors. The outcome of the tariff talks will play a significant role in whether the economy heads into a recession and where Bitcoin’s price goes next. Despite economic worries, Bitcoin may continue to rise. In the past 24 hours, approximately $34 million worth of Bitcoin trades were closed out, with buyers closing $8.5 million in positions and sellers closing $25.4 million in bets against Bitcoin.
Investor confidence in Bitcoin is growing as it nears the $100K mark. Large investors purchased around $4 billion worth of Bitcoin in the last two weeks of April. Additionally, spot Bitcoin and Ethereum ETFs saw strong inflows, with over $3.2 billion entering the market last week. BlackRock’s Bitcoin ETF alone brought in nearly $1.5 billion, its biggest weekly gain this year.
Despite the positive trends, Bitcoin’s netflow is currently negative by $39.79 million, indicating that more Bitcoin is being moved out of exchanges than into them. This suggests that investors are choosing to store their Bitcoin in private wallets, reducing selling pressure and supporting Bitcoin’s recovery. However, there is a risk of increased selling pressure around the $100K mark, as long-term holders may start selling if Bitcoin’s price continues to rise.
Looking ahead, buyers are breaking through Fib levels and holding the price above EMA trend lines. Bears are defending further surges above $98K, with Bitcoin currently trading at $97,182, up over 0.7% in the last 24 hours. The rising 20-day moving average and strong RSI indicate that Bitcoin still has room to move higher. If it breaks above $99,500, the price could quickly jump to $100,000. Sellers will likely put up a fight at that level, but if buyers succeed, Bitcoin could climb to around $103,000.
On the downside, sellers may try to pull the price back to the 20-day moving average, an important support level. If Bitcoin bounces there, the uptrend remains strong. However, if it drops below, it could fall further towards the 50-day average at $92.8K. Overall, the future of Bitcoin’s price remains uncertain, dependent on various factors such as trade discussions, market sentiment, and investor behavior.