Will Bitcoin (BTC) avoid a crash to $90k this week as the institutions hold the balance?
Bitcoin remains below the $100,000 level and struggles to sustain a position above the $95,000 support level. With a bearish closing on Sunday, the intraday uncertainty in Bitcoin might lead to a bearish conclusion if the institutional support fails to resurface.
Will Bitcoin manage to create a morning star pattern for a bounce back this week? Or is a downfall to the $90,000 support level inevitable?
Bitcoin Price Analysis
With a 2.17% drop on Sunday, Bitcoin concluded the last week on a bearish note. Starting from the quick reversal from its recent all-time high of $108,364, BTC’s price dropped nearly 9% last week.
This resulted in a massive bearish engulfing candle, undermining the recovery run over the past two weeks. BTC’s price has created a low of $92,118, testing the 50-day EMA line.
Currently, BTC sustains above the $94,000 support level, avoiding a bearish closing below it. At press time, BTC is trading at a price of $94,884, with a minor growth of 0.33%.
Creating a doji candle at a crucial support level increases BTC’s chances of a comeback. The potential turnaround moments could create a morning star pattern with a recovery on Tuesday.
However, the RSI line dropping under the halfway level warns of an underlying weakness.
Bitcoin ETFs Marks Third Positive Week
During the bearish week, institutional support witnessed a gradual turnaround, reflecting increased volatility. Starting on December 12, the U.S. spot Bitcoin ETF registered a massive inflow of $636 million.
Following a bullish trend, the ETFs accumulated $493.95 million and $275.39 million in subsequent days. However, with the largest-ever outflow of $680 million on Thursday, institutional support took a quick hit.
Bitcoin ETFs
By the end of the bearish week, institutional demand for U.S. Bitcoin ETFs had failed to recover but limited the outflow to $276.93 million. Overall, the past week remained bullish, with a net inflow of $449.25 million, marking its third positive week.
However, the $680 million outflow on Thursday ended a 15-day streak of positive inflows. Surprisingly, the bearish trend in U.S. spot ETFs has not lasted more than three days since December 9. Therefore, a potential resurgence in institutional support is likely this week.
Bitcoin Price Targets
As of press time, the Bitcoin trend is at a critical juncture near the $94,400 support level. The intraday Doji candle reflects uncertainty in the price trend.
However, the bearish influence from last week’s pullback suggests the potential for a breakdown. A bearish close below the $94,000 support level will likely test the dynamic 50-day EMA at $92,514. Price action indicates a possible retest of the $90,742 support level.
If institutional support resurfaces today, the intraday Doji candle could boost the chances of a bullish continuation tomorrow. This would form a morning star pattern and increase the likelihood of BTC testing the immediate resistance at $102,557.
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