Key takeaways
- BTC rose by less than 1% over the past 24 hours and is trading around $91,600.
- The coin could move higher if spot Bitcoin ETFs continue to record inflows.
Spot Bitcoin ETFs record inflows
Bitcoin was trading above $91,600 on Friday after bouncing off a key support level over the weekend. The positive performance comes as institutional demand for Bitcoin has strengthened, helping to ease recent selling pressure.
Data from SoSoValue shows U.S.-listed spot Bitcoin ETFs posted a moderate inflow of $21.12 million on Wednesday, following a larger inflow of $128.64 million the previous day.
In its weekly report, Glassnode said Bitcoin remains structurally fragile, still trading below the $93k resistance level. The report added that with a weak market structure, liquidity becomes a primary lens for assessing what comes next.
Analysts are confident that recent selling pressure has eased as volatility declined. In an email to CoinJournal, Dr. Sean Dawson, head of research at on-chain options platform Derive.xyz, said the next phase will hinge on the Federal Reserve’s rate decision in December. He commented:
“The market is balancing on a knife edge, but sentiment has stabilized considerably as rate-cut expectations have recovered. The odds of a 25bp cut at the upcoming FOMC meeting collapsed to 39% a week ago, but have since rebounded to nearly 87%. In response, BTC has held a solid bounce, rising more than 10% from $82K to $91.5K at the time of writing.”
Shifts in macro expectations have reduced some of the downward pressure that dominated the options market through late October and November. The 25-delta skew, a key measure of relative demand for puts versus calls, has moved sharply up from its lows.
Bitcoin could extend recovery toward $100,000
The 4-hour BTC/USD chart shows a disciplined recovery as Bitcoin has rebounded well from its recent decline. The leading cryptocurrency found support around the key psychological $80,000 level last week and has added roughly 6% since then.
At the time of writing, BTC trades above $91k. If the recovery continues, it could extend the rally toward the next major psychological level at $100,000.
The 4-hour Relative Strength Index (RSI) sits at 61 and is pointing upward toward overbought territory, indicating growing bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) produced a bullish crossover on Thursday, signaling buy momentum and supporting the prospect of continued recovery.
However, failure to overcome the $93k resistance level could see Bitcoin retest key support near $85,000.