Bitcoin Price Shows Weakness as Momentum Breaks Outside Range

Bitcoin is experiencing a shift in momentum as its price breaks outside the $96K-$97K range, indicating potential weakness in the market. The coin saw a decline on Tuesday, marking the third consecutive day of losses and its first breach below the established range in a week. This move suggests a strengthening downward trend, with BTC trading at $95,420 at the time of writing, representing a 0.3% decrease.

With a notable 44% increase in trading volume over the past 24 hours, the return to the $95K territory raises the possibility of a downside breakout. The $95K level acts as a psychological support level for the coin, and a drop below it could accelerate the decline.

Despite the pressure on Bitcoin’s price, institutional interest remains robust. BlackRock recently acquired $127 million worth of Bitcoin, while Tudor Investment Corporation disclosed a doubling of its BlackRock iShares Bitcoin Trust (IBIT) portfolio to $426 million in a recent SEC filing. This institutional activity indicates a positive outlook on Bitcoin despite its current price struggles.

Moreover, other institutions may view the decline in BTC price as an opportunity to accumulate more of the asset, potentially leading to price stability and a reversal of the current trend. Recent data shows that Bitcoin spot ETFs received net inflows of $70.6 million on Monday, signaling a shift in sentiment and the potential formation of a new trend in the near future.

In terms of technical analysis, Bitcoin’s price pivot at $95,770 suggests that sellers are currently in control. The BTCUSD pair is likely to test the first support level at $95,140, with further downside momentum potentially pushing it towards the second support at $94,500. However, breaking above $95,770 could signal a shift in momentum towards the upside, with the first resistance level at $96,300 and the possibility of further gains up to $96,775.

Overall, while Bitcoin may be facing downward pressure in the short term, institutional interest and a potential reversal in market sentiment could pave the way for a more positive outlook in the coming days. As the market continues to evolve, investors will closely monitor price movements and institutional activity to gauge the future direction of Bitcoin’s price.