Institutional Funds Pouring into Bitcoin, Will it Break the $80,000 Barrier with a 4-Week Rally?

▲ Bitcoin (BTC)/ChatGPT generated image ©

Despite geopolitical risks originating from the Middle East, Bitcoin (BTC) continues its upward trend for the fourth consecutive week, nearing the breakthrough of the $80,000 mark. The influx of institutional fund money, aggressive accumulation by corporations, and expectations of abundant liquidity supply in the market are strongly supporting the rally of the leading cryptocurrency.

According to FXStreet, an investment media outlet, on April 24 (local time), this week's Bitcoin price increase was driven by institutional investors' demand for Bitcoin spot ETFs. As per SoSoValue data, a net inflow of $809.25 million was recorded into these funds by Thursday, signaling a fourth consecutive week of significant capital inflow. Furthermore, Strategy continues its aggressive moves, investing $2.54 billion to purchase an additional 34,164 coins, bringing its total holdings to 815,061. With Bitcoin's price exceeding their average purchase price of $75,527, Strategy's stock price also soared to $183.25, drawing significant market attention.

Macroeconomic liquidity tailwinds are also fueling the rise. The U.S. Treasury is expected to undertake its largest-ever bond purchase, valued at $15 billion, which is anticipated to inject new vitality into the highly liquidity-sensitive virtual asset market. However, unresolved tensions in the Middle East, such as military friction between Iran and the U.S. surrounding the Strait of Hormuz and potential maritime blockades, continue to act as short-term deterrents, suppressing investors' preference for risk assets.

On-chain indicators generally support a positive structural shift. According to Glassnode analysis, the price has recovered its market average cost, marking a significant bull market transition, which suggests that both individual and institutional spot demand are simultaneously reviving. Crypto analytics firm Santiment also analyzed that market sentiment has rapidly shifted from extreme pessimism to FOMO (Fear Of Missing Out) and advised that sustained spot absorption is needed to break through $80,000, and a healthier rally would be possible if overheated sentiment calms down somewhat.

From a technical perspective, the leading cryptocurrency rose over 5% this week, firmly maintaining a positive trend above the 50-day exponential moving average (EMA) of $72,790 and the 100-day EMA of $75,498. Based on the daily chart, the Relative Strength Index (RSI) shows an upward trend around 63, and the Moving Average Convergence Divergence (MACD) also recorded a positive value, indicating that buyers firmly hold market dominance.

In the short term, the first resistance to overcome is the Fibonacci 50% retracement level at $78,962, followed by the strong psychological barrier of $80,000. If this resistance is breached, the 200-day EMA at $82,290 and the Fibonacci 61.8% retracement level at $83,437 become the next upward targets. Conversely, during a downward correction, the previous resistance level of $75,680 and the 100-day EMA will act as key support levels, and failure to maintain support could push the price down to $74,487, the outlet diagnosed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*