Bitcoin (BTC) has struggled to overcome the daily death cross between the 50 and 200 Moving Averages (MAs) in recent days. The cryptocurrency has attempted to break through the critical resistance/support zone between $61,000 and $62,000 but has not yet succeeded. This moment could lead to a further decline in the crypto market or mark the start of a new bullish phase.
The fate of the crypto market hangs by a thread.
Long-term investors remain committed
Despite recent challenges, on-chain data suggests that long-term investors remain focused on the bigger picture. The global economic outlook remains uncertain, with ongoing conflicts in the Middle East and between Russia and Ukraine exacerbating the crisis. This situation is driving more people to Bitcoin and other digital assets as a safe haven.
Amid fears of a crypto correction, institutional investors are increasing their Bitcoin holdings. For example, BlackRock’s IBIT and Fidelity’s FBTC have recently seen significant flows into their U.S. spot Bitcoin ETFs. Goldman Sachs has reported over $400 million in exposure to these ETFs.
Additionally, Japanese company Metaplanet completed a $3.3 million Bitcoin purchase on Tuesday, bringing its holdings to over 303 BTC.
More than $2.5 billion worth of stablecoins have flowed into centralized exchanges recently, which could indicate a potential increase in buying pressure in the market.
Is there an outbreak coming?
Bitcoin price has formed an inverted triangle consolidation pattern over the past five months, indicating a potential major bullish breakout. Today’s Consumer Price Index (CPI) data from the United States will shed light on whether the Federal Reserve will follow through with its expected rate cuts next month.
Critical levels to watch out for
From a technical perspective, Bitcoin is showing a macro bullish signal that could soon materialize. However, this positive outlook could be jeopardized if the price falls below the key liquidity range of $48,000 to $50,000.
As institutional investors pile in, is this the start of a new Bitcoin boom? Share your insights.
