- Summary:
- Bitcoin price has struggled to flip the $94k mark into a support level, despite strong ETF inflows. We discuss its near-term outlook.
Bitcoin price continues to face resistance at the $94k mark heading into the weekend, but 10% gains in the last seven days has created an underlying bullishness. The sentiment is reflected in the ETF market where Bitcoin spot ETFs have been on a five session winning streak.
The eleven Bitcoin spot ETFs recorded $442 million worth of inflows on Thursday, bringing the total inflows in the last four days to $2.6 billion. That underlines strong institutional confidence in Bitcoin’s future potential, which is good for the price upside. However, its momentum could be disrupted by the uncertainty surrounding US-China trade relations.
BTC’s trading volume declined by 13% in the last 24 hours, indicating declining buying appetite. That is likely informed by happenings in the broader financial markets. US trade policy has disrupted markets, reducing appetite for high-risk assets like cryptocurrencies. A continuation of that sentiment will likely to keep Bitcoin price subdued. The Relative Strength Index (RSI) on the daily chart is at 67, indicating bullish control nearing the overbought territory. In addition, the Average Directional Index (ADX) is at 22, which denotes a weak uptrend. BTCUSD will need to not only breach the $94k mark, but also convert that into a support level to build a strong traction for sustained gains.
Bitcoin Price Prediction
The momentum on Bitcoin price signals that the sellers will likely be in control if resistance persists at $93,850. The downward action will likely find initial support at $93,200. However, an extended bearish control will break below that level and could take the action lower to test $92,500.
On the flipside, going above $93,850 will signal the onset of bullish control, with initial resistance likely to be at $94,000. Breaking above that level will invalidate the downside thesis. Also, the resulting momentum could extend gains and test the second resistance at $94,800.