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- Bitcoin holds above $97K, testing the 38.20% Fibonacci level, showing slight recovery despite resistance and market volatility.
- The next critical resistance near $98,949 could lead to a larger rally, though institutional caution is holding back further growth.
- After $71.07M in Bitcoin ETF redemptions, institutional support remains tepid, with the market’s neutral sentiment adding to the uncertainty.
Bitcoin continues to hold above $97,000, resisting intermittent movements that have occurred in the past. After a possibility of touching the 23.60% Fibonacci level at $94,633, the BTC/USD pair rapidly pulled back and established other resistance levels. The cryptocurrency strengthens and, at the same time, the consolidation faces downs with more optimism at the horizon.
Bitcoin’s Upward Trend Potential
As of now, Bitcoin is testing the 38.20% Fibonacci level just slightly below $97k at around $97, 101. This is a slight upturn by 0.46% from the previous day that recorded a rise of 1.01%. The moving average is closely monitored because, in case it crosses it, an upward trend may be realized. Bitcoin price analysis depicts a progressive climb of the price on the up and up despite its presence on the resistance area.
Source: TradingView
The next critical level for Bitcoin is close to the 50% Fib level at $98,949. If the cryptocurrency can get past this point, it can create a larger rally, given that altcoins are already rising. The market’s sentiments are a little more positive, but the further outlook remains generally conservative, with institutions yet to commit to backing Bitcoin. However, it still remains to see institutional investors returning to the market in large measures.
ETF Redemptions and Market Sentiment
Bitcoin-based ETFs have recorded massive redemptions: $71.07 million have been redeemed on February 19. This year again the knife Prior to December, Fidelity led the sell-off by reducing its exposure by $48.39 million in Bitcoin holdings. Other significant players like Valkyrie, ARK, 21Shares, and VanEck also joined in, thus experiencing a net outflow in the process. This comes as a sequential second day of outflows, and has elicited concern over the long-term outlook of institutional investors in the crypto asset.
The Cryptocurrency Fear and Greed Index has been oscillating between fear and the neutral state from February without much change with current value of 49. This indicates that without a move to extreme fear in the market the possibility of having a feel backing the rally may not be well established. Although, the BTC has had a good performance, general market mood could stil pose threat to the the price rise in future weeks.
Source: Alternative.me
Apart from February 6, Bitcoin ETFs have recorded positive inflows only twice, which may explain the apprehension among institutional investors. Previous Bitcoin rallies were fuelled by institutional funds, especially long-term investments, and therefore the absence of such participants would offer a major restraint to Bitcoin. The neutral sentiment regarding institutional interest makes it possible to infer that there is more downside risk to Bitcoin, specifically in the context of breaking through the resistance level.
