Over the past week, Bitcoin’s price action has been both intriguing and cautionary. Despite significant institutional moves and bullish sentiment, we’re seeing signs that a pullback to key support levels might be imminent.
Institutional Buys: BlackRock and MicroStrategy
BlackRock has continued to lead institutional interest in Bitcoin, adding substantial holdings to its portfolio—reportedly around $50 billion worth in the past year. Michael Saylor’s MicroStrategy has also remained a consistent buyer, raising an additional $2 billion earlier this month to bolster its Bitcoin reserves. These moves have fueled long-term bullish sentiment for BTC, with many expecting continued price growth.
Why No Immediate Upside?
Despite these substantial purchases, Bitcoin has not yet managed to break significantly higher past the $102K-$106K range. This suggests that buyer exhaustion is setting in, with current demand insufficient to fuel a breakout. Instead, shorts are starting to build, indicating growing bearish sentiment in the short term.
Support Retest Likely
Analyzing the Bitcoin liquidity map reveals that a significant number of traders have opened long positions in the $85K-$88K range. This concentration makes it a key liquidity zone for the market to target. As a result, Bitcoin could be poised to retest its previous support levels at $96K, $92K, and $88K in a move to liquidate these longs before any sustained rally.
Liquidity and Market Dynamics
Bitcoin thrives on liquidity grabs, and with most longs clustered at lower levels, a pullback seems almost inevitable. A healthy retracement would allow the market to reset before attempting to reclaim new highs.
What’s Next?
For now, it is crucial for traders to understand that "never go all in." Keep nearly 40% to 50% of your assests in stables like USDT and USDC. The bull run will not begin before the BTC rally. Bull run has several phases which I'll attach below.
DON'T FOMO and DYOR!
