BTC Faces Another $90K Rejection: Key Catalysts for Next Rally
As Bitcoin ETF withdrawals show signs of stabilization, BTC is positioned more favorably to push past the critical $93,000 resistance level.
The Bitcoin (BTC) rally that preceded the FOMC meeting on Wednesday encountered resistance at the $90,000 level, facing strong overhead pressure and lackluster demand from exchange-traded funds. However, multiple indicators point toward the possibility of strengthening bullish momentum once the BTC/USD trading pair successfully breaches the $93,000 threshold.
Key takeaways:
- Bulls targeting Bitcoin need to convert the $90,000-$93,000 zone into a new area of support.
- Withdrawals from spot ETFs are showing signs of stabilization, indicating a decrease in selling pressure from institutional investors.
Reclaiming $93,000 as support crucial for Bitcoin price
The BTC/USD pair has descended into a fresh trading range spanning $86,000 to $90,000, remaining confined within these boundaries since Jan. 20.
"Bitcoin has returned to retesting the $86,000-$87,000 zone," Aditya Singh, co-founder of Crypto India, stated in a recent X platform post, noting that Bitcoin's crucial support level lies at the 100-week moving average positioned at $87,500.
The accompanying chart illustrates that primary resistance is located between the 50-day simple moving average (SMA) positioned at $90,000 and the 100-day SMA situated at $94,000.
Taking a broader perspective, Bitcoin "may not be as weak as many people think," market analyst Jelle noted in a post published Wednesday on X.
According to Jelle, the downward trend has been broken, and the weekly time frame shows that lows have been eliminated, with the analyst further stating:
"Get back above $93,000, and bulls are firmly back in the driver's seat."
According to Bitcoin analyst AlphaBTC, the next move could involve capturing the liquidity cluster concentrated around $93,400.
According to Cointelegraph's previous reporting, a successful break and closing price above the moving averages would pave the way for an upward movement toward the $98,000 resistance area. A closing price exceeding this resistance area might indicate the conclusion of the corrective period.
Bitcoin ETF outflows diminish
A potential catalyst that could spark a BTC price breakthrough is renewed institutional demand, which has weakened following substantial withdrawals from spot Bitcoin exchange-traded funds (ETFs).
According to data from Glassnode, flows into US spot Bitcoin are "stabilising, with the 30D average drifting back toward neutral after sustained outflows."
Although this development "marks a meaningful cooling in sell-side pressure," the BTC marketplace continues to rely "more on spot holder conviction than fresh ETF-driven demand," according to the onchain data provider, which further noted:
"If flows can re-accelerate into consistent positive territory, it would strengthen the case for renewed trend continuation."
Meanwhile, information from Capriole Investments shows that the count of Bitcoin treasury companies purchasing BTC on a daily basis has experienced a significant decline, further confirming the reduction in institutional demand.
Strategy, led by Michael Saylor and holding the position as the largest corporate Bitcoin treasury holder, stands as the sole company that seems to be actively purchasing, having acquired 2,932 BTC worth $264.1 million during the previous week.
This acquisition elevated Strategy's aggregate Bitcoin holdings to 712,647 BTC, obtained for approximately $54.19 billion at an average acquisition price of $76,037 per coin.
The probability of Bitcoin surpassing the $90,000 mark will improve when institutional demand and inflows to ETFs make a comeback.