Bitcoin's Price Rally Faces Resistance as Institutional Interest Surges 1.4%

Bitcoin's price has been hovering around $109,100, nearing its recent highs above $110,300, as it attempts to surpass the latest selling pressure. Over the past 24 hours, the cryptocurrency has fluctuated between $108,800 and $110,550, showing modest but sustained volatility. Its weekly performance is positive, with a gain of approximately 1.4%, driven by renewed institutional interest through US spot Bitcoin ETFs that attracted over $400 million in inflows. Alongside institutional investors, whales are also preparing for significant moves that could deeply impact the BTC price rally.

As Bitcoin's price shows strength despite various challenges, market conditions and sentiments are frequently changing. Market participants remain uncertain about price stability after BTC reaches new highs, resulting in neutral sentiments. Recent transfers, minting, and burning activities suggest incoming volatility. Whale Alert has reported a series of transactions that could influence the rally in the coming days. Over 200 million USDC have been minted at the treasury, and more than 300 million have been transferred to Coinbase. Additionally, a billion USDT has been minted at the Tether treasury, while 500 million XRP has been unlocked from the escrow to an unknown wallet. The most notable transfer was a dormant address with over 10,000 BTC, which transferred all its cryptocurrency to an unknown account after 14 years and 3 months of inactivity.

Whenever long-dormant BTC wallets suddenly move, traders anticipate potential volatility. Moves to exchanges can trigger panic selling, while increased activity in old wallets often aligns with major bull runs, signaling cycle transitions or profit-taking by early adopters. The short-term price action indicates that bulls are weakening as they approach the final resistance zone before the all-time high. The token has been attempting to break through this zone, but bears are taking profits, causing the price to drop and preventing a breach. With upward pressure mounting, the BTC price is at risk of falling back to local support below $107,000.

In the 4-hour chart, a clear rejection can be seen from the resistance zone between $110,025 and $110,563. The MACD is on the verge of turning bearish, with levels close to validating a bearish crossover. Meanwhile, the Stochastic RSI has already deviated lower, supporting the bearish outlook. Therefore, even if the price attempts a rebound, the lack of bullish strength could prevent a strong and sustained breakout above the range. Considering the current chart patterns and market conditions, forming a new all-time high this week could be challenging for the Bitcoin price rally. However, sentiment changes can occur suddenly in the crypto space, potentially squashing bearish dominance over the rally.