- Summary:
- Bitcoin price has drop sharply from record highs near $110k to the brink of breaking below six figures. But here's a case for a reversal.
Bitcoin price was down on Thursday as the broader cryptocurrency market continued to consolidate. BTC traded at $102,387 at the time of writing, down by 1.2 % on the daily chart. However, despite its extended loss, Bitcoin is still up by 1.7% on the weekly chart and is at +9.5% year-to-date.
Bitcoin Price Signals Reversal
The momentum on Bitcoin price is likely to flip, as indicated by its trading volume. According to crypto market data analysis site, CoinMarketCap, the coin saw a 17% decline in its traded volume in the last 24 hours. That shows investors are less inclined to sell the coin, and a continuation of the same trajectory could help it recover.
Despite the disruption caused by the consolidation, institutional interest in Bitcoin is still strong. Some of the notable large-scale buyers in recent days include MicroStrategy, which bought $1.1 billion worth of BTC, and BlackRock, which spent $600 million on the crypto coin.
Also, Bitcoin’s ETF performance remains strong, and have recorded net positive inflows in the last five successive trading sessions. According to Coinglass data, Bitcoin spot ETFs had $247.7 million worth of inflows on Wednesday. That affirms strong interest by institutional investors and continuation of the trend will support recovery by Bitcoin price.
Elsewhere, it was widely reported this week that 12 US states, Florida, Alabama, Wyoming, Arizona, Texas, Ohio, Oklahoma, Pennsylvania, North Dakota, New Hampshire, Massachusetts, and Utah, have initiated processes to establish strategic Bitcoin Reserve. The states have taken cues from US President Donald Trump’s accommodative approach towards cryptocurrencies. Success by those states could add strong propulsion to Bitcoin price in the coming weeks.
Bitcoin Price Prediction
Bitcoin price pivots at $102,880 and the momentum signals that the sellers are in control. The BTCUSD pair will likely move lower to the first support at $100,970. If the sellers extend their control, it could extend the decline to test the second support at $99,155.
Conversely, moving above $102,880 will shift the momentum to the upside. That will likely see the first resistance come at $104,840. Breaking above that level will invalidate the downside narrative. Also, that could clear the path for further gains to test the second barrier at $106,590.
