Bitcoin Set For Stronger Week, Eyes $88K On Stable Macro Backdrop: Analyst

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Institutional investors poured nearly $1 billion into Bitcoin exchange-traded funds last week, signaling a massive appetite for the asset even as prices fluctuated.

Data shows that 13 different US spot ETFs brought in roughly $996 million over those five days. This trend did not slow down as the new week began.

On Monday alone, these investment funds saw another $238 million in net inflows. This steady stream of capital is a primary factor behind the current market recovery.

Institutional Backing Drives Price Recovery

The influx of cash is happening at a time when the available supply of Bitcoin is tightening. When large funds buy up coins to back their ETFs, they remove those coins from the open market.

This can create a supply shock if demand continues to rise. Analysts expect the momentum from these investment funds to carry through the rest of the week.

It should be noted that the current market environment supports this trend since the volatility in other sectors is declining. For example, the VIX, measuring volatility in stocks, is decreasing, while gold has demonstrated less volatile behavior recently.

The cryptocurrency recovered to the $76,000 region on Monday after the sharp selloff observed during the previous weekend. The crypto was trading at a level of $78,200 at one point during the weekend and then dropped by 5% to hit a low of $73,400.

Although the decline occurred, the crypto maintained its main support levels. The move is interpreted as another risk-off move.

Now, the market is shifting gears into a “risk-on” environment. Reports disclose that the alpha coin is now forming a pattern of higher lows and higher highs on shorter timeframes.

The $88k Resistance Zone

The next major hurdle for the market is a resistance band that sits between $85,000 and $88,000, according to crypto analyst Michaël van de Poppe. Reaching the top end of that range would require a 15% increase from recent prices.

If Bitcoin can break through that ceiling, it may set the stage for a much larger move. Some market experts believe the price could hit $100,000 by May.

This outlook depends on the world remaining relatively stable. Large geopolitical disruptions could still derail the current upward pressure.

Technical indicators show the rebound from $73,000 was clean and decisive. This level was a crucial area for the market to hold to keep the positive trend alive.

Without any major negative news on the horizon, the path toward $88,000 appears wide open.

Most observers are keeping a close eye on whether the current buying pace can be sustained. If the ETF inflows remain strong, the end of April could be very active for traders.

Featured image from Meta, chart from TradingView
source: https://www.tradingview.com/news/newsbtc:70d267d26094b:0-bitcoin-set-for-stronger-week-eyes-88k-on-stable-macro-backdrop-analyst/