Key Takeaways
- BTC rose by less than 1% over the past 24 hours and is trading around $91,600.
- The coin could continue to climb as spot Bitcoin ETFs keep seeing inflows.
Spot Bitcoin ETFs See Continued Inflows
Bitcoin is trading above $91,600 after recovering from key support levels over the weekend. The recent uptick coincides with growing institutional demand for the asset, easing some of the selling pressure seen in recent sessions.
Data from SoSoValue show that U.S. spot Bitcoin ETFs recorded a modest inflow of $21.12 million on Wednesday, following a positive flow of $128.64 million the previous day.
In a weekly report, Glassnode noted that Bitcoin remains critically fragile as it continues to trade below the $93,000 resistance level. The report added that, with market structure weakening, liquidity has become an essential tool to assess what comes next.
Analysts say recent selling pressure has eased alongside declining volatility. In an email to CoinJournal, Dr. Sean Dawson, head of research at on-chain options platform Derive.xyz, said the next phase will depend on the Fed’s interest rate decision in December. He wrote,
“Markets are walking a tightrope, but sentiment has stabilized considerably as rate cut expectations recover. The probability of a 25 basis-point cut at the upcoming FOMC meeting fell to 39% a week ago, but has since risen to almost 87%. In response, BTC posted a strong recovery, rising more than 10% from $82,000 to $91,500 at the time of writing.”
A shift in macroeconomic expectations has reduced some of the intense bearish pressure that dominated the options market in late October and November. The 25-delta skew, a key gauge of relative demand for put options versus calls, has moved sharply up from its lows.
Bitcoin Could Extend Recovery Toward $100,000
The 4-hour BTC/USD chart shows a constructive recovery after the recent dip. The leading cryptocurrency found support near the important psychological level of $80,000 last week and has gained roughly 6% since then.
At the time of publication, BTC is trading above $91k. If the recovery holds, gains could extend toward the next major psychological level near $100,000.
The 4-hour Relative Strength Index (RSI) sits at 61 and is trending toward overbought territory, indicating growing bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) produced a bullish crossover on Thursday, signaling buy pressure and supporting the case for continued upside.
However, failure to break the $93,000 resistance level could prompt a retest of key support around $85,000.