Bitcoin has recently experienced significant volatility due to geopolitical tensions. However, as these concerns began to dissipate over the past 48 hours, Bitcoin's price has recovered.
While some investors have exited the market, others remained steadfast and helped the asset recover.
Bitcoin Secures Institutional Support
Bitcoin ETF recorded inflows of $588 million in the past 24 hours, the highest level in a month. The last time such inflows were seen was on May 22, when Bitcoin ETF recorded $934 million in inflows. This surge clearly demonstrates rising confidence among institutional investors.
Despite market volatility, institutional support remains strong. Last week's inflows suggest that large investors continue to maintain confidence in Bitcoin during uncertain times. This trend indicates long-term institutional commitment to Bitcoin, regardless of short-term price fluctuations.
Bitcoin's long-term holder (LTH) spending binary indicator shows minimal spending for the first time since June 10. As LTH supply approaches an all-time high of approximately 14.7 million BTC, this indicates continued confidence among seasoned investors. These long-term holders are reluctant to distribute their assets, signaling a strong belief in Bitcoin's long-term potential.
If LTHs choose to hold and accumulate, Bitcoin's liquid supply decreases, creating natural supply pressure. During such periods, increased demand can drive prices up. Historically, moments of minimal long-term holder sales, such as those at the end of 2020 and after March 2020, have set the stage for explosive price increases.
BTC Price Needs to Break Barriers
Bitcoin's price is currently at $106,554, just 3.2% away from reaching the significant psychological price point of $110,000. However, to make this move, it must first secure $105,662 as a support level. This support is crucial in laying the groundwork for further ascent.
If Bitcoin can rebound from this support, it could overcome the resistance level at $108,000. Successfully breaking this threshold would give Bitcoin momentum to continue rising towards $110,000. This indicates a continuation of the upward trend and is likely to attract more institutional interest.
However, if market conditions reverse or investors decide to sell, Bitcoin could fall below the $105,662 support and potentially slip under $105,000. In this case, the bullish thesis would be invalidated, and Bitcoin would face additional downward pressure, indicating a shift in market sentiment.
