Bitcoin has surpassed the $85.000 mark (approximately €78.000), reaching its highest level in the last eight months. This movement in the crypto market coincides with a surge in institutional exchange-traded funds (ETFs) and a macroeconomic environment characterized by fluctuating oil prices and regulatory policies.
Bitcoin's momentum towards new local highs
The cryptocurrency market has started the week with remarkable strength. Bitcoin's price has experienced a significant rise, reaching levels above $85.000 for the first time in months. This milestone reflects a substantial shift in supply and demand dynamics within the digital ecosystem.
The upward movement has triggered massive liquidations of short positions on major derivatives exchanges. When traders betting on declines are forced to buy back their positions to mitigate losses, a phenomenon known as short throttling occurs, further fueling the price increase.
Technical analysis: RSI and moving averages
From a technical analysis perspective, several key indicators paint an interesting picture. The daily Relative Strength Index (RSI) is near overbought territory, suggesting strong short-term buying pressure, although it also advises caution regarding potential technical corrections.
Bitcoin has also managed to recover its 50-week exponential moving average (EMA). This long-term dynamic support level is often interpreted by institutional analysts as a sign of continued structural upward trend.
Institutional flows in ETFs
Institutional adoption continues to play a decisive role. Net capital inflows into US spot Bitcoin ETFs have accelerated significantly, led by products from global asset managers. As the price approaches these entities' cost basis, selling pressure eases, facilitating price gains.
The evolution of the crypto market demonstrates increasing maturity driven by institutional investors and clearer regulatory frameworks. Staying informed and trading on regulated platforms remains the best strategy for managing risk in highly volatile environments.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
Generative artificial intelligence tools were used to create this article.
