Prominent crypto analytics firm Swissblock predicts that Bitcoin (BTC) could experience a temporary pullback before continuing its upward trajectory after reclaiming the $90,000 threshold.
In a recent analysis on the social media platform X, Swissblock highlighted that Bitcoin may correct to as low as $89,000 after encountering strong resistance in the mid-$90,000 range.
“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 structural strength, these dips are for buying,” the firm stated.
According to Swissblock’s chart analysis, Bitcoin must maintain support at $83,000 to sustain its bullish uptrend.
The firm also noted a significant surge in spot Bitcoin exchange-traded fund (ETF) purchases this week as the cryptocurrency began its breakout.
“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 added.
Additionally, Swissblock is closely monitoring the Bitcoin Fundamental Index (BFI), a metric that combines liquidity and network growth. The firm emphasized that the BFI must strengthen for Bitcoin’s rally to continue.
“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,” the firm warned.
At the time of writing, Bitcoin is trading at $93,312.
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Sources: Swissblock/X, Swissblock/X, Swissblock/X