Recent data reveals a significant drop in Bitcoin’s network activity, raising concerns about a potential bear market. However, the influx of institutional investments could offer stability to the market. 📈
While volatility has declined and resistance is present at $98K, Bitcoin (BTC) continues to show promise.
**Why Is Network Activity Dropping?**
– The Network Activity Index for BTC shows a sharp decline since December 2024, indicating reduced transaction activity and daily active addresses. This pattern often occurs during bear markets or specific events like the 2021 China ban. 📉
**Institutional Confidence: A Potential Stabilizer**
– Despite market weakness, institutional confidence in Bitcoin could provide stability for BTC’s long-term growth. Institutional inflows have been substantial recently, as evidenced by $5.13 billion entering BTC ETFs over the past three weeks. This indicates strong investor confidence even amidst declining retail activity.
**Bullish Signals Remain**
– Whale activity has spiked with institutional investors like BlackRock purchasing 280 BTC worth $37.8 million and Metaplanet adding 555 BTC, signifying their belief in the asset’s long-term growth potential.
**The Road Ahead for Bitcoin**
– While resistance at $98K stands strong, a successful breakout above this level could push prices towards $100K. However, failure to break through could lead to a pullback, and support levels near $90K and $92K should be observed.
**The Bottom Line**
– Bitcoin’s current price action, coupled with increasing institutional inflows and whale activity, suggests potential growth in the market. With low volatility and key resistance levels at $98K, Bitcoin might be gearing up for another upward movement.