Prominent crypto analytics firm Swissblock says Bitcoin (BTC) may first pull back before heading higher after reclaiming the $90,000 range.
Swissblock says on the social media platform X that Bitcoin may correct to as low as $89,000 after running up against strong resistance in the mid-$90,000s.
“The $94,000-$95,000 zone is clearly the resistance to beat. A pullback to gain momentum seems like the next logical move, but how far? The $89,000-$90,000 zone could be next to test bulls, but with BTC’s structure strength, these dips are for buying.”
According to Swissblock’s chart, Bitcoin needs to hold support at $83,000 to remain in a bullish uptrend.
Next up, Swissblock says that the buying of spot Bitcoin exchange-traded funds (ETFs) surged this week as the flagship crypto asset began breaking out.
“Everyone’s bullish as Bitcoin pumps to $94,000. Institutional ETF investors joined the pump, [April 22nd] saw the second-largest inflow day with 17,000 BTC bought, after 62,000 in outflows during February and March. Is this the start of a buying spree?”
Swissblock is also keeping a close watch on the Bitcoin Fundamental Index (BFI), a metric that combines liquidity and network growth.
According to Swissblock, the BFI needs to gain strength in order for Bitcoin to keep rallying.
“BFI is weakening! It means the upside could not be sustainable. We need to monitor this indicator… If it doesn’t strengthen, prepare for downside pressure.”
Bitcoin is trading for $93,312 at time of writing.
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