Bitcoin News Today: Institutional Confidence vs. Correction Fears as Bitcoin Tests $100K Support

Bitcoin's price action has sparked renewed debate over the resilience of its two-year uptrend as the cryptocurrency hovers near critical support levels. After testing key resistance around $106,500, Bitcoin (BTC) stabilized above $100,000, with analysts divided on whether this signals a potential rebound or a deeper correction. Recent shifts in institutional and retail demand, coupled with mixed technical indicators, have added layers of complexity to the outlook.

Bitcoin's recovery has been partly fueled by a modest resurgence in inflows into US-listed spot ETFs. SoSoValue data shows a $1.15 million net inflow on Monday, ending a week of $1.22 billion in outflows. This reversal, though small, has been interpreted as a positive sign by bulls, who argue it reflects growing institutional confidence. However, the momentum remains fragile. On Thursday, ETFs faced another $870 million in outflows, the second-largest single-day withdrawal since their launch, according to CoinDesk. The conflicting trends underscore the uncertainty gripping the market.

Glassnode's analysis highlights early signs of stabilization around the $100,000 support level, with spot trading volume surging to $14.1 billion on Monday from $11.5 billion the prior week. This increase suggests buyer re-engagement but falls short of confirming a sustained bullish trend. The Relative Strength Index (RSI) currently sits at 44, indicating waning upward momentum and raising the risk of a pullback toward $100,000. Meanwhile, the Moving Average Convergence Divergence (MACD) hints at potential bullish signals.

Bitfinex analysts argue that the current correction resembles prior mid-cycle consolidations in 2024 and 2025, suggesting it may not signal the end of the bull market. They note that 72% of BTC supply remains in profit at $100,000, a historically positive sign for recovery. However, retail demand remains muted. Despite a brief influx of $524 million in ETF inflows earlier this week, outflows quickly resumed, dragging Bitcoin to a six-month low of $95,900. "Risk assets usually see a strong bid post-shutdown, but this dynamic hasn't materialized," said Capriole Investments' Charles Edwards according to analysis.

Long-term bullish sentiment persists, particularly among institutional investors. Michael Saylor, founder of MicroStrategy, reiterated his prediction that Bitcoin will surpass gold in market value by 2035. He cited growing adoption by central banks and corporations as key drivers, with MicroStrategy itself holding over 214,000 BTC valued at $20 billion. Such confidence contrasts with immediate concerns over ETF outflows and macroeconomic headwinds, including the Federal Reserve's "somewhat restrictive" policy stance according to market analysis.

Bitcoin now faces a critical juncture. A decisive close above $106,500 could reinvigorate the uptrend, while a sustained drop below $100,000 would likely trigger further corrections. Analysts emphasize that renewed institutional demand and macroeconomic clarity will be pivotal in determining whether this consolidation phase leads to a resumption of the bull run or a more prolonged downturn.