Bitcoin price broke below the $105k mark on Tuesday after declining marginally by 0.8%. It traded at $104,700 at the time of writing, down for the second successive session. However, the coin’s 24-hour trading volume was down by 15% , signaling declining selling pressure that could provide support to the coin in the near-term.
In addition, IntoTheBlock data shows a steep decline in BTC exchange netflows (difference between BTC entering and exiting exchanges), from -$3.82 million a week ago to -$417.94 million as of this writing. This adds support to the Bitcoin price upside potential, as it also points to low selling pressure.
The crypto market bellwether will likely stay on the ascending channel in the near-term if it stays above the $105k support . Institutional uptake of BTC is strong, with Bitcoin spot ETFs recording $667 million worth of net inflows on Monday, the fourth successive session of gains.
Five of the US-traded Bitcoin spot ETFs saw net positive inflows, led by BlackRock’s IBIT which had $305.9 million and Fidelity’s FBTC which recorded $188.1 million. IBIT inflows stand at $8.3 billion year-to-date, making it the seventh most valuable fund in US financial markets. This shows the strong acceptance of BTC into investment portfolios, and the scenario sets up the coin for continued gains.
In addition, Strategy reported that its latest purchase was 7,390 BTC worth $764.9 million, continuing to spearhead institutional Bitcoin adoption. The company currently holds 576,230 BTC and a YTD yield of 16.3%. That beats Bitcoin’s current year-to-date gain of 12% .
Bitcoin Price Prediction
Bitcoin price momentum calls for further upside above $104,550 pivot level. With the buyers in control, the BTCUSD pair will likely head higher and encounter the first barrier at $105,560. However, an extended control by the buyers will breach that level and potentially test $106,570.
Alternatively, going below $104,500 will trigger a downward momentum. In that case, BTC price will likely find the first support at $103,920. Breaking below that level will invalidate the upside momentum Furthermore, a stronger momentum could extend losses to test $102,930.
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