Bitcoin Surges 30% to $95,000 on Institutional Buying, ETF Inflows

Bitcoin's price has recently surged, hovering around $94,000 to $95,000, driven by substantial inflows into exchange-traded funds, a positive macroeconomic outlook, and increased buying pressure from institutional investors. Long-term holders, or HODLers, have been instrumental in absorbing short-term selling pressure, helping to stabilize the market. From January to the present, Bitcoin holders have net increased their holdings by 635,340 BTC, with long-term holders now holding approximately 13.755 million BTC, or about 65% of the circulating supply. In contrast, short-term holders have seen a net decrease of about 460,000 BTC in the past 155 days, indicating that market sentiment has not fully recovered despite Bitcoin's 30% retracement from its January all-time high of $109,000.

The cost basis of Bitcoin long-term holders is mostly concentrated in the $65,000-$95,000 range, while short-term holders have recently been taking profits or cutting losses. This dynamic suggests that the market is still in a phase of distribution at higher levels. Currently, there are 2.6 million BTC in the market in a loss position, mainly from purchases above $95,000, forming a strong resistance level. The market needs to pay attention to whether the key psychological level of $95,000 can be effectively surpassed.

Analysts are closely monitoring the $95,000 resistance level, as breaking above this point could signal the start of a new bullish trend. However, consistent technical judgments suggest that for a sustained upward movement, Bitcoin must not only break above $95,000 but also stabilize at this level. This would indicate a shift in market sentiment and potentially attract more investors, further driving the price higher. The recent price action has been fueled by various factors, including the weak dollar and the overall optimism in the market. The support level at $91.5k has held firm, providing a safety net for the price to rebound from. This support level is crucial as it has prevented the price from falling further and has allowed for the current recovery.

Despite the positive outlook, it is important to note that the $95,000 resistance level poses a significant challenge. Historically, resistance levels have been difficult to break through, and this one is no exception. The market will need to see sustained buying pressure and positive news to overcome this hurdle. If Bitcoin can successfully break above $95,000 and stabilize, it could pave the way for a new round of bullish momentum, potentially pushing the price even higher.