Throughout the previous week, Bitcoin [BTC] has maintained a trading range between $95,000 and $98,000. Currently, the price of Bitcoin stands at $95,936, indicating a 2.55% decline on a daily basis and a 1.56% decrease on weekly charts.
As Bitcoin faces challenges in sustaining an upward trend and surpassing higher resistance levels, investors, particularly institutions, are seizing the opportunity to acquire BTC.
Renowned crypto analyst Ali Martinez has pointed out an upsurge in institutional interest by referencing the Coinbase Premium Index.
Escalation of Institutional Demand for Bitcoin
Amid Bitcoin’s prolonged consolidation phase, there has been a notable increase in institutional demand. During the past week, the Coinbase Premium Index has consistently displayed positive values.
When the index is positive, it indicates stronger buying activity on Coinbase compared to Binance, suggesting that U.S. investors are playing a predominant role in the market.
This surge in institutional buying interest has led to the accumulation of Bitcoin at relatively lower price levels.
The mounting buying pressure from institutions reflects optimistic views as they anticipate a potential price rebound in the coming days.
Analysis of BTC Price Trends
The escalating institutional demand signals positive sentiments among this investor group. Notably, the diminishing selling pressure from miners is indicative of bullishness prevailing among institutions. According to Alphractal, there has been a decline in miners’ selling pressure, resulting in a reduction of BTC supply from this segment.
Following a period of heightened selling activity by miners, current values are positioned below the average levels, hinting at a slowdown in miner-driven sell-offs.
Furthermore, the ratio of Bitcoin’s exchange stablecoins has witnessed a notable boost over the past week. Institutional investors often utilize stablecoins like USDT or USDC for purchasing BTC, and an increase in stablecoin supply signifies enhanced buying power within the market.
Moreover, inactive coins, particularly the total unspent outputs, have seen a steady uptrend, while the unspent coins on Coinbase have remained consistent. This suggests that major long-term holders are not liquidating their BTC holdings, either via Coinbase or other exchanges.
In summary, Bitcoin is witnessing a surge in institutional demand, characterized by reduced selling pressure and heightened buying activities. With institutions actively accumulating without significant selling, a strong bullish sentiment is prevalent in the market.
Given the current market scenario, Bitcoin is poised for further price appreciation on its charts. If this positive momentum continues, Bitcoin could break through the $98,405 barrier and aim for the $100,000 milestone. However, the presence of short-term holder sellers in the market might lead to a retracement towards $95,031.