Bitcoin on-chain data indicates a potential local bottom around $90K, but breaking the $99K mark will require a strong foundation. This is occurring amidst macroeconomic volatility and rising U.S. inflation.
Bitcoin’s Resilience Amidst Economic Uncertainty
Despite the struggles of U.S. stock indexes, Bitcoin shows resilience, climbing over 4% to close at $95,883. This recovery after four days of losses is crucial amidst economic uncertainty and rising consumption costs due to high tariffs. The post-Thanksgiving price action has sparked speculation that U.S. investors may sustain their trading appetite to push BTC back to $99K. However, confirmation of this bullish hypothesis requires convincing on-chain data.
On-Chain Data Signals Bottom Formation
With the 'Trump trade' settling, approximately one million BTC, acquired at an average price of $93,447, rely on data to validate their commitment to the $100K target. Bitcoin’s resilience amid inflationary pressures suggests a potential bottom near $90K, a level briefly tested as short-term holders offloaded their positions. This could create a strong baseline for a new rally, potentially incentivizing long-term commitment. Recent actions from retail investors accumulating BTC and pullback of institutional investors become key components of the current picture. However, this may be a 'local' bottom, and not a true 'market' bottom; a reversal is possible unless the asset shows similar activity at historically 'high-risk' levels like $99K.
99K Resistance Requires Both Micro and Macro Support
On-chain data indicates support at $90K, with investor reactions likely avoiding further declines and establishing a local bottom for a potential rebound. In the coming days, monitoring these datasets will be crucial to determine stability within the $95K-$97K range. This will form the basis for movement to $99K, where significant activity is expected. Decisions made by 256.92K addresses holding around 208K BTC at an average price of $98,309 will be crucial. The expectations from US monetary policy, considering rate cut forecasts by the Federal Reserve, also become important. All this could provide a solid ground for breaking above $100K.
Thus, reaching the $99K mark requires a combination of strong on-chain data and stable macroeconomic background. This will be the key factor for further Bitcoin strengthening amidst increased interest and participation from institutional investors.
