Bitcoin continues its upward trend, rising above $116,000, attributed to renewed institutional investor interest and market improvement.
Return of Institutional Inflows
One of the main factors driving Bitcoin's recovery is the return of net inflows into spot Bitcoin ETFs. After four days of outflows, August 5 saw a resurgence, with BlackRock's IBIT ETF receiving $91.5 million in new investments. This underscores growing institutional participation from the Asia-Pacific region.
Technical Picture
From a technical perspective, Bitcoin has managed to hold above key short-term support levels, bouncing off its recent low of $112,000. It is now hovering just beneath the 30-day simple moving average, with $116,900 emerging as a key resistance level.
Further Growth Prospects
The next decisive moment for Bitcoin will depend on whether it can convincingly break above $116.9K—the cost basis for short-term holders. A daily close above that level could trigger a wave of short-covering and renewed momentum toward the $120K range; however, there are risks of a repeat test of the $112K support zone.
Bitcoin's recent rally above $116,000 reflects a rebound in institutional appetite and technical stabilization, but the path ahead remains uncertain.
