Bitcoin price is eyeing a potential rally toward $90,000, following a bounce in its apparent demand from a previously negative zone. This uptick in demand has prompted some to speculate on the start of a new bullish phase. However, experts urge caution, as the market is still far from confirming a full trend reversal.
Bitcoin Price Apparent Demand Shows Signs of Recovery
Bitcoin’s apparent demand has shown signs of recovery, bouncing from a negative sentiment that had dominated the market for weeks. The 30-day sum of apparent demand has recently moved into positive territory, hinting at a possible shift in Bitcoin’s market behaviour. However, while the recovery is encouraging, some analysts caution that it may not yet signal the start of a complete market reversal.
BTC/USD price chart (source: Cryptoquant)
Looking at past cycles, similar patterns were followed by extended periods of consolidation, which prevent any quick conclusions about the rally’s sustainability. As observed during the 2021 cycle, an initial demand bounce was often followed by months of sideways movement before a proper recovery is achieved.
Thus, while the recently notable performance cannot be denied, it still raises the question of whether the uptrend will continue.
BTC Hashrate and Network Confidence
With the increased apparent demand, Bitcoin’s hash rate is also rising. This increase means higher optimism among miners despite BTC/USD’s sideways trend. A higher hash rate points to increased network security and more distributed mining, both of which are positive for Bitcoin in the long run.
“Bitcoin’s hashrate continues to explode to new highs,” noted analyst Miles Deutscher. “This signals increased network security, miner confidence, and potentially more decentralization, all of which are bullish signs for Bitcoin.”
This trend supports the idea that Bitcoin remains a solid investment despite price fluctuations. With higher hashrates, Bitcoin’s security and decentralization improve, contributing to its long-term potential. Moreover, according to Robert Kiyosaki, investors have turned to Bitcoin as a “Safe haven” since the recent dollar crash.
Support Levels Amid MicroStrategy’s Bitcoin Accumulation
Bitcoin’s price is currently testing critical support levels, with the most essential level identified at $82,024. This level, which corresponds to the point where 96,580 BTC were previously accumulated, is a key area to watch closely.
Crypto analyst Ali Charts stated, “The most critical support for Bitcoin sits at $82,024, where 96,580 BTC were previously accumulated. A level worth watching closely!” A strong defense of this support level would indicate that buyers are in control and that a higher price move could be imminent.
Institutional investors, including MicroStrategy, play a significant role in Bitcoin’s market performance. Recently, MicroStrategy purchased an additional 3,459 BTC to reach a total Bitcoin holdings of 531,644 BTC, which is equivalent to approximately $35.92 billion.
Similarly, another institutional buyer, Metaplanet, bought 319 BTC for approximately $26.3 million. This indicates new institutional buying, which, if necessary, could support the Bitcoin price in case it falls. Moreover, the president of the ETF store, Nate Geraci, revealed in an X post that 79 companies have declared that they have Bitcoin on their balance sheets, indicating growing interest.
Resistance Levels to Watch As Bitcoin Price Moves Higher
As Bitcoin’s price continues its upward movement, it faces several key resistance levels. The first BTC price resistance level ranged from $74,000 to $78,000, and the current price has tested and broken this level. An upward breakout above this range has led to a surge in Bitcoin’s price to its next target, a pivotal point of control (POC) at $97,000.
“While short-term momentum appears bullish, we still face multiple resistance hurdles before confirming the correction is complete,” said analyst Stockmoney Lizards.
Beyond the $97,000 level, Bitcoin could move towards the $110,000 range, with the analysts predicting this level may be reached by late summer.
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