Bitcoin (BTC) price has been on a rollercoaster ride recently, experiencing heightened volatility due to escalating tensions in the Middle East. The flagship cryptocurrency dropped by as much as $103,396 on Tuesday, causing a ripple effect across the wider altcoin market. This led to over $513 million being liquidated from the crypto-leveraged market, with long traders bearing the brunt of $421 million in losses. Despite this setback, crypto traders remain optimistic about a potential bullish rally, with the BTC fear and greed index hovering around 68 percent.
One of the key factors supporting Bitcoin’s price is the strong demand from institutional investors. The balance of Bitcoin on centralized exchanges has been steadily decreasing, dropping to 2.08 million from 2.26 million in just a few days. This trend is driven by U.S. spot Bitcoin ETFs and institutional investors like Strategy and Metaplanet, who have been actively accumulating BTC. In the last five days, U.S. spot BTC ETFs saw a net cash inflow of $1.46 billion, with BlackRock’s IBIT leading the way.
Looking ahead, BTC price seems to be forming a bullish continuation pattern despite the recent market turbulence. After a 5 percent drop to test a crucial support level at $103k, Bitcoin has bounced back slightly to trade around $105k. The two-hour timeframe shows that BTC price retested a bullish breakout from a falling logarithmic trendline, with the Relative Strength Index (RSI) indicating oversold levels and a potential rebound in the near future. However, a sustained close below the support range between $103k and $101k could signal further bearish sentiment in the coming weeks.
Overall, the outlook for Bitcoin remains positive, supported by strong institutional demand and technical indicators suggesting a potential uptrend. As the market continues to navigate through volatility, investors are advised to closely monitor key support and resistance levels to make informed trading decisions.