Bitcoin network activity drops to bear market levels – Red flag or buy signal?

• Bitcoin confirmed bearish tendencies, however institutional inflows might stabilize the market.
• BTC confronted $98K resistance, with rising whale exercise and institutional confidence.

Bitcoin [BTC] community exercise has dropped to bear market levels since December 2024, because the Community Exercise Index has sharply declined. 

This means a slowdown in transaction exercise and a lower in each day lively addresses, signaling decrease demand for block area. Whereas this sample is typical throughout bear markets or particular occasions just like the China ban in 2021, it could not essentially be a crimson flag. 

Whereas the market might seem weak, the inflow of institutional confidence might assist stabilize BTC in the long run. At press time, Bitcoin was buying and selling at $96,998.87, reflecting a 2.91% improve over the previous 24 hours. 

Volatility stays low at 25.80%, signaling calm, however…

Bitcoin’s volatility has decreased to 25.80%, its lowest stage previously thirty days. This era of low volatility might counsel that the market is experiencing a brief calm earlier than any important value actions. 

Traditionally, such durations of low volatility are sometimes adopted by sudden value shifts, whether or not upward or downward.

Given the current value improve, the market could also be getting ready for one more unstable part, particularly with the upcoming FOMC assembly probably influencing broader market sentiment.

Supply: IntoTheBlock

BTC faces resistance at $98K, indicating key value motion

On the time of writing, BTC was testing key resistance at $98K, with Fibonacci retracement ranges indicating essential value motion.

The 0.236 and 0.382 retracement ranges at $95,656 and $96,347 are key areas of curiosity, whereas the 50% and 61.8% ranges at $94,799 and $92,171 present potential help zones.

The Stochastic RSI was at 41.55, signaling impartial circumstances, with room for each upward and downward motion.

A profitable breakout above $98K would probably goal the $100K mark, however failure to breach this stage might result in a pullback, making $90K and $92K the important thing help zones.

Supply: TradingView

BTC ETF inflows sign institutional confidence regardless of uncertainty

Bitcoin ETF inflows have been sturdy, with a complete of $5.13 billion getting into BTC ETF merchandise over the past three weeks. These inflows sign robust institutional confidence in Bitcoin, at the same time as retail exercise slows.

Nonetheless, the upcoming FOMC assembly might introduce market volatility, as any changes in rates of interest or commentary from the Federal Reserve might affect investor sentiment.

Regardless of this uncertainty, the inflows into BTC ETFs counsel that institutional traders stay optimistic about Bitcoin’s long-term potential.

Supply: Santiment

Whale exercise has surged not too long ago, with institutional traders like BlackRock buying 280 BTC value $37.8 million and Metaplanet including 555 BTC. 

These purchases point out that giant holders are betting on Bitcoin’s future progress, and their actions might sign confidence within the asset, even amid unsure market circumstances. 

Is Bitcoin set for progress regardless of bear market indicators?

Regardless of bear market indicators, BTC’s value motion, together with institutional inflows and whale exercise, suggests potential progress.

With low volatility, main resistance at $98K, and institutional confidence rising, BTC could also be gearing up for one more upward transfer.

Nonetheless, the market’s path will depend upon BTC’s response to key value ranges and the upcoming FOMC assembly, which might affect investor sentiment.