Important points
- BTC is trading near $91,600, up less than 1% in the past 24 hours.
- The coin could rise further as the Spot Bitcoin ETF continues to record inflows.
Bitcoin ETF records inflows
Bitcoin price is trading above $91,600 on Friday after rebounding from a major support level over the weekend. This strong performance comes as institutional demand for Bitcoin has increased and recent selling pressure has eased.
The US-listed Spot Bitcoin ETF posted modest inflows of $21.12 million on Wednesday, following positive flows of $128.64 million the previous day, according to data obtained from SoSoValue.
Bitcoin remains sluggish, according to Glassnode weekly reportReally easy to break, Because it is still trading below the $93,000 resistance level. The report added that as market structures weaken, liquidity will be an important lens through which to understand what happens next.
Analysts believe that recent selling pressure has subsided as volatility has declined. Dr. Sean Dawson, head of research at on-chain options platform Derive.xyz, said in an email to Coinjournal that the next steps will depend on the Fed’s interest rate decision in December. He said:
“The market is barely balanced, but sentiment has stabilized significantly as interest rate cut expectations continue to recover. The probability of a 25 basis point rate cut at the next FOMC meeting fell to 39% just a week ago, but has since soared to nearly 87%. BTC has rebounded strongly in response, rising more than 10% from $82,000 to $91,500 at the time of writing.”
Changes in macro expectations have alleviated some of the intense bearish pressure that dominated the options market from late October to November. The 25 delta skew, a key measure of the relative demand for puts and calls, has risen sharply from its lows.
Bitcoin could extend recovery towards $100,000 level
The 4-hour chart of BTC/USD is bearish and efficient as Bitcoin has successfully recovered from its recent decline. The leading cryptocurrency found support last week around a key psychological level of $80,000 and has since surged 6% above its value.
At the time of writing, BTC is trading above $91,000. If the recovery continues, the rally could widen towards the next key psychological level of $100,000.
The Relative Strength Index (RSI) on the 4-hour chart is 61, pointing upwards towards overbought levels and indicating increasing bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) showed a bullish crossover on Thursday, providing a buy signal and further supporting the possibility that the recovery could continue.
However, if the $93,000 resistance level cannot be overcome, Bitcoin could retest the critical support at $85,000.
