The dynamics of Bitcoin's activity and institutional investments are becoming central topics in the crypto market. Despite signs of a bearish trend, there are factors that may stabilize the situation.
Declining Network Activity of Bitcoin
The Network Activity Index for Bitcoin has sharply declined since December 2024, indicating a decrease in transaction activity and daily active addresses. Such patterns often emerge during bear markets or specific events, such as the China ban in 2021.
Increasing Institutional Inflows
While the market may appear weak, the surge in institutional confidence could help maintain stability for Bitcoin in the long run. At the time of writing, Bitcoin was trading at $96,998.87, reflecting a 2.91% increase over the past 24 hours. Bitcoin ETF inflows have been robust, totaling $5.13 billion over the past three weeks, signaling strong institutional confidence.
Resistance at $98K
Bitcoin is testing significant resistance at $98K, with Fibonacci retracement levels indicating critical price action. The 0.236 and 0.382 retracement levels at $95,656 and $96,347 are key areas of interest, while the 50% and 61.8% levels at $94,799 and $92,171 provide potential support zones.
Despite bearish market signals, Bitcoin’s price action, along with institutional inflows and whale activity, suggests potential growth. Low volatility, major resistance at $98K, and increasing institutional confidence may indicate Bitcoin is gearing up for another upward move.
