The short-term bullish trend in Bitcoin takes a minor pause as bulls struggle to sustain ground above the $94,000 mark. With a minor intraday pullback of nearly 1%, the sudden pause in the recovery run was of a potential retest with a steeper correction.
However, the lower price rejections and the broader market sentiments fire up the anticipations of Bitcoin reaching a new all-time high. Will the BTC price recovery survive a short-term hiccup to extend the bullish trend?
In the daily chart, the BTC price trend showcases a quick turnaround from the $76,000 mark, creating a local bottom. The recovery run has surpassed the 50 and 200 EMA lines to avoid a death cross event.
Based on the Fibonacci levels retraced over the pullback phase, the uptrend has exceeded the 50% level. However, the bull run struggled to surpass the 67.80% Fibonacci level at $94,631.
Currently, Bitcoin fluctuates between the 50% and 67.80% Fibonacci levels. However, the intraday pullback leading to a bearish candle warns of an evening star pattern.
Despite the short-term hiccup, the technical indicators maintain a positive approach. The MACD and signal lines gain bullish gaps in the positive territory with a fresh streak of green histograms.
Furthermore, the uptick in the 50-day EMA line increases the possibility of a bullish crossover with the 100-day EMA. Based on the Fibonacci levels, a breakout rally will likely challenge the $100,000 mark close to the 78.60% level.
In case of an extended rally, the secondary price target stands at $106,000. However, for optimistic traders, the 1.272 and 1.618 Fibonacci levels at $114,000 and $124,000 mark the possibility of a new all-time high.
On the flip side, the crucial support remains near the $91,000 mark, followed by the $87,000 level.
Bitcoin Bull Run Fueled by Supply Drop and Institutional Buys
Supporting the chances of a bullish trend, Altcoin Gordon, a crypto analyst, has highlighted a major drop in the Bitcoin exchange balances. Based on the data from Balance On Exchanges, the analyst highlights the levels last seen in 2018.
The sudden drop in the supply on the exchanges will likely lead to a demand surge. This increases the possibility of a bullish extension in Bitcoin. Furthermore, the Bitcoin ETFs in the U.S. market witnessed their fourth day of consecutive inflow.
On April 23, the ETFs recorded $916 million worth of inflow, breaking the $900 million mark for two consecutive days.
Hence, with the increased institutional purchases and declining exchange supply, Bitcoin will likely hit a new all-time high in 2025.
