Bitcoin (BTC) has recovered 28% from a 5-month low below $75,000 on April 9. However, the failure to decisively surpass the resistance level of $95,000 has raised concerns that the latest recovery may just be a trap for the bulls.
Daily BTC/USD price chart | Source: TradingView
Capital inflow into Bitcoin ETFs creates a 'solid foundation'.
Another major collapse could be prevented as BTC's bullish momentum is supported by a significant inflow of capital into spot Bitcoin ETFs in recent days.
According to market intelligence firm Glassnode, this provides Bitcoin with a 'stronger foundation' for a surge.
When Bitcoin surpassed $95,000, its 14-day momentum indicator surged from 58.7 to 82.1, as shown in the chart below.
Glassnode stated in its latest Weekly Market Pulse report that: 'This breakout has pushed bullish momentum above the statistical peak, a rare event in the past signaling strong growth.'
This indicator last crossed the statistical peak in November 2024, before Bitcoin's price surged 61% to a new ATH.
Bitcoin price momentum indicator | Source: Glassnode
However, Glassnode warns that such high momentum also increases the likelihood of short-term cooling periods, explaining the current chaotic price action of BTC.
The on-chain data provider added:
‘Sustained strength will require spot volume and demand to remain at positive levels.’
Meanwhile, Bitcoin's Spot Accumulation Delta Volume (CVD), which tracks the difference between buyers and sellers, remains close to the statistical peak despite a slight pullback in recent days.
A high CVD indicates that buying pressure 'remains relatively strong', Glassnode noted.
‘This positive signal supports the bullish momentum seen in the spot market, although the slight weakness suggests some profit-taking activity may be returning as prices extend into higher ranges.’
Bitcoin's spot CVD | Source: Glassnode
Bullish signs are also emerging with higher supply and metrics such as the profitable supply (currently at 86%) increasing. This indicates a shift in market sentiment favoring the upward trend, reducing the likelihood of a major collapse.
The bullish flag pattern suggests a level of $108,000.
Bitcoin's technical indicators show it remains within the bullish flag pattern, which positions the top asset well for a breakout if key support levels are maintained.
The flagpole section developed after the price increased from $84,000 to a seven-week high at $95,857 between March 3 and April 25.
Currently, BTC is consolidating in a descending parallel channel, testing resistance levels over the past few days, including the upper boundary of the flag pattern at $95,000.
BTC/USD chart – 4 hours | Source: TradingView
Breaking this level could trigger another bullish rally, with the target of the bullish flag, calculated from the previous peak of the rally, lying around $108,300, a 14% increase from the current price.
Renowned analyst alphaBTC stated that Bitcoin is 'preparing for a big move', targeting $100,000 and above.
BTC/USD chart – 1 hour | Source: AlphaBTC
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.