Crypto markets are showing recovery this week, with total capitalization nearing $3.92 trillion. Bitcoin is leading the market, although its current price raises questions among analysts.
Bitcoin Under Pressure Near $113.6K
Despite recent growth, Bitcoin is struggling at the $115,000 level, which analysts refer to as critical. According to Glassnode, BTC faces resistance around $113,600, which corresponds to the average price paid by short-term holders over the last three months. This makes $113,600 a key level as many investors might sell at this point in an attempt to break even.
Three Possible Scenarios for Bitcoin
Analysis of the current situation shows that Bitcoin's next moves depend on whether key support levels hold:
**Dip Before Pump** – If BTC slips, it could fall to $104K–$108K, flushing out overleveraged bulls, followed by a potential strong rebound.
**Holding the Line** – If BTC defends the $111K–$112K zone, it could quickly reclaim $114.5K and continue upward, especially if rate cuts add momentum.
**Worst-Case Bear Signal** – This scenario involves a deeper drop to the 50-week SMA ($92K–$98K), which would signal a bearish shift in the market.
Declining Inflows in Bitcoin ETFs
The situation is exacerbated by declining inflows into Bitcoin ETFs, indicating waning confidence among institutional investors. Over the past two weeks, outflows of nearly $1.5 billion have been observed, while inflows have dropped to just $81.4 million. Meanwhile, BlackRock invested $262.6 million in Ethereum ETFs, significantly outpacing Bitcoin's activity.
Currently, Bitcoin is in a challenging position, struggling to maintain key levels, while investment interest in Bitcoin ETFs is declining, potentially affecting future price movements in the cryptocurrency sector.
