Bitcoin price has surged this week, reclaiming $90,000 for the first time in nearly two months. This rally has been driven by various factors, including rising inflows to spot BTC ETFs and the weakening value of the US dollar. However, some analysts are skeptical about the sustainability of this rally, attributing it to leverage-driven factors. There are concerns that this pump might not last and could lead to a potential crash in Bitcoin price.
Analysts have noted a rapid surge in open interest in Bitcoin futures, with more than $2 billion added in 24 hours. This increase in open interest, along with the weakening US dollar, suggests that this rally might fade. While the rising inflows to spot BTC ETFs indicate institutional interest in the market, there are mixed opinions on whether this rally is sustainable. The ongoing tariff war and the declining US dollar index have also played a role in boosting the value of Bitcoin.
Despite concerns of a possible correction in Bitcoin price, some analysts believe that the king coin might avoid a crash to $80,000. Bullish technical indicators and macroeconomic conditions suggest that Bitcoin could continue its uptrend. Analysts have pointed out a classic double bottom pattern in Bitcoin’s price chart, which often precedes significant upswings. If Bitcoin can maintain support levels and make a decisive daily close above $90,000, it could extend the rally and potentially reach $100,000.
BitMEX co-founder Arthur Hayes has suggested that as the US dollar weakens, capital inflows to Bitcoin will increase, supporting the uptrend. The US bond market crisis and investors’ shift towards assets like crypto and gold could further drive Bitcoin price higher. With these factors in play, it is likely that Bitcoin price might consolidate within a range if it faces rejection at $90,000, rather than crashing to $80,000. However, market conditions remain volatile, and caution is advised for investors.
In conclusion, the recent Bitcoin price rally has been influenced by a combination of factors, including rising open interest, a weakening US dollar, and institutional inflows. While some analysts are cautious about the sustainability of this rally, bullish technical indicators and macroeconomic conditions suggest that Bitcoin might avoid a crash to $80,000 in the near term. As the market continues to evolve, it is important for investors to stay informed and monitor key support and resistance levels to make well-informed trading decisions.
