Recently, the value of Bitcoin has continued to rise to mid-$70.000 which is driven by the inflow of funds through institutional ETF transactions and increasingly stable macro conditions. However, this rally feels different, especially with the growing trend of large-scale purchases by institutions.
Amidst geopolitical tension in the Middle East, as well as the lack of resolution to the conflict between Iran and the United States, several major companies have started to see Bitcoin as a safe haven asset. This has positioned Bitcoin in competition with gold as a safe haven. The consistent inflow of funds indicates strengthening institutional confidence in cryptocurrency.
Despite climbing to around $75.000, the bitcoin market has encountered a new resistance level at $76.900. According to data from CoinDesk, there are many large investors who are currently opting to play it safe by selling their holdings. There are concerns among these investors, especially after Bitcoin dropped to $60.000 in January. This has led many investors to believe that the current price sits around their breakeven point. As a result, they are beginning to sell their bitcoin to recover losses incurred in several previous months.
Unfortunately, this situation has created a handoff phase in the market. On one hand, there is strong demand from ETFs, while on the other side, there is significant selling pressure from many investors. This dynamic is making it difficult for Bitcoin’s price to break out further.
For Bitcoin to continue its progress to its upward momentum, a stronger wave of demand will be needed to absorb the increasing selling pressure currently dominating the market.
