Technical Analysis On Bitcoin: Institutional Levels

Bitcoin's price remains confined within a range, fluctuating between key resistance at $108,000-$109,000 and support at $91,000-$92,000. This consolidation has persisted since December, coinciding with the stock market's all-time high. While the S&P 500 has repeatedly tested this high, it has yet to decisively break through, suggesting a continued correlation between Bitcoin and broader risk assets. Consequently, a significant downturn in the stock market could likely trigger a similar decline in Bitcoin.

Traders should closely monitor the $91,000-$92,000 support level. A breakdown below this point could lead to a sharp drop towards $74,000. Conversely, a breakout above the $108,000-$109,000 resistance zone could propel Bitcoin towards $114,000-$115,000. However, upside potential may be limited by a long-term trendline connecting the highs from 2017, 2021, and 2024. This trendline has historically marked the peak of Bitcoin's bull cycles over the past eight years and presents significant resistance until convincingly broken.

Despite ongoing institutional investment and continued purchases by MicroStrategy (MSTR), Bitcoin's price has struggled to break higher. This persistent inability to rally, even with substantial buy pressure, warrants caution among investors.  The key levels outlined above remain crucial indicators for Bitcoin's near-term trajectory.

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