- Bitcoin price has reclaimed $106k, and the sharp spike in institutional appetite is notable, with more US states reserve laws lined up.
Bitcoin price reclaimed the $106k resistance on Friday, signaling a potential uptick in the upside momentum. The coin traded at $106,062 at the time of writing, up by 1.34% on the daily chart. Institutional inflows have been providing tailwinds to BTC price, with nine successive gains at the ETF market.
A recent report by blockchain data aggregator, Glassnode, shows a general decline in the number of transactions, with a notable uptick in the number of large transactions valued at between $320k-$500k. Transactions exceeding $100k currently account for almost 90% of the total network volume.
As of this writing, transaction activity has declined to 18-month lows, despite the steady price uptrend. That signals that institutional and whales are increasing their hold of the market. Thursday’s session saw $388.30 million worth of net inflows , with BlackRock’s IBIT registering $278.9 million and Fidelity’s FBTC having $104.4 million.
Meanwhile, Arizona’s senate passed a newly-reintroduced Bitcoin reserve bill by 16-14 votes on Thursday, while Ohio lawmakers approved tax-exemptions for crypto payments valued at $200 or less. These developments signify an underlying appetite for the coin from state and Federal governments. As of this writing, 17 US states have initiated laws to establish cryptocurrency reserves, with 4 having already passed laws creating the reserves.
On the downside, however, Bitcoin’s trading volume was down by 10.7% in the last 24 hours. That indicates potential weakening buying appetite, which will limit the coin’s upside potential.
Bitcoin Price Prediction
The momentum on Bitcoin price calls for further upside above $105,785. That will likely see further gains, with initial resistance likely to come at $106,540. However, an extended control by the buyers will break above that level and could potentially push the price higher to test $107,200.
Conversely, going below $105,785 will shift the momentum to the downside, with initial support likely to be at $105,140. The upside narrative will be invalid if the price breaks below that level. Further control by the sellers at that point could push the price lower to test $104,500.
