- BTC outflows hit a 14-month high, signaling strong investor re-accumulation.
- Bitcoin rallies above $93K, eyeing $100K amid rising macro risks.
- Technicals and fundamentals align, supporting a potential breakout.
Bitcoin has rebounded up from the lows, climbing above $93,000, raising the potential that the market is resuming its strength. For a short while, due to an extended period of price volatility, coupled with hesitation from traders, bullish sentiment is starting to take hold, and the leading cryptocurrency is closing in on fresh local highs. Despite that, the bigger picture continues to be overshadowed by lingering macroeconomic uncertainties, particularly the deepening worsening in US-China trade tensions. Then, geopolitical pressure exists on the traditional and cryptocurrency financial systems.
Bitcoin’s technical indicators and on-chain metrics point to a strengthening bullish structure during a wide-ranging macro environment. Now, market observers also perceive the $100,000 level as the next significant resistance point, and a movement above it could begin a new movement phase of sustained upward movement. As per data obtained from CryptoQuant, the 100-day moving average of Bitcoin netflow has fallen to its lowest point since February 2023. As it turns out, more BTC is being withdrawn from exchanges than getting deposited, or as it’s commonly interpreted, it’s positively bullish for the price of bitcoin.
This is because the outflow of these accelerating outflows is now reaching multi-year highs, so many think they are reducing sell side liquidity ahead of a potential breakout. But if Bitcoin can push past the near term resistance, the bulls could take a decisive momentum as the market moves on to such an extent that could trigger a significant rally.
Key Levels in Focus as Bitcoin Re-Accumulates
Bitcoin is at a crossroads. A long term bullish control was established. Now, the focus is on whether the asset can continue its trajectory with a breakout from previous all-time highs, despite cautiously returning confidence to the market. Between the disruptions introduced from the ongoing U.S.-China trade dispute, the macroeconomic risks they bring, and the desire for decentralized, non-sovereign assets, Bitcoin could now be disrupting the current rally, or be acting as fuel for additional demand across decentralized, non-sovereign assets.
The near-term trajectory of the asset remains divided among a broad network of analysts. Others are holding onto their bags, while some anticipate a breakout to a new all-time high above $109,000. Others caution that the momentum may be a local peak, followed by an extended consolidation or a downturn. However, Bitcoin is again making the headlines as the future system to generate wealth in 2025, especially amid increased economic and political uncertainty.
Further, on-chain data from CryptoQuant adds weight to this bullish argument. According to the platform, the 100-day moving average of NetFlow, the net flow of Bitcoin to and from exchanges, has reached a new low since early 2023. Typically, an excellent indication of re-accumulation and bitcoin bulls’ conviction in bitcoin’s long-term prospects, this is the largest sustained exchange outflow seen in over a year.
As the coins withdrawn from the trading platforms are often moved to cold storage for long-term holding, similar patterns of exchange outflow have historically been followed by major price rallies. If this historical trend persists, the possibility that Bitcoin will move upward is not only technologically driven but also has increasingly bullish fundamentals and alters investor behavior.
BTC Holds Steady Above $92K Amid Broader Market Uncertainty
At the time of the latest trading session, Bitcoin was trading at $93,440 and the asset was still powerful after reclaiming the critical $90,000 level. A rally is the backdrop to renewed bullish sentiment amid key macroeconomic and political turbulence, weighing investors’ decision-making across asset classes.
The importance of the 200-day moving average (MA) being watched at a technical level is the 200 day moving average being located just below $88,700. Historically, this level has played the role of a key support zone and as a general gauge of market sentiment. If Bitcoin keeps pushing above this benchmark, bullishness is likely to continue. There remains a chance of a close below the 200-day MA triggering further selling pressure and dropping to, or even below, the $80,000 level should risk aversion prevail.
The market structure is constructive for now, as bulls attempt to deliver BTC to the $95,000 to $100,000 area within the next few months. Those on the market await to see if the price successfully exceeds current levels. The forthcoming days are important to determine whether Bitcoin will continue on this path or pull back for the short term.
