Following the daily death cross between the 50 and 200 Moving Averages (MAs), Bitcoin’s (BTC) price has attempted to rally beyond the crucial resistance/support range between $61k and $62k in the past few days without solid success. The flagship coin is at a crucial point that could lead to a further crypto crash or renewed bullish momentum.
However, on-chain data shows long-term investors remain undistracted from the bigger picture as the global economic outlook shows no sign of a soft landing ahead. The Middle East and the Russia vs Ukraine conflicts have exaggerated the global economic crisis, thus leading to the mass adoption of Bitcoin and other digital assets.
Bitcoin Demand from Institutional Investors on the Rise
Amid heightened fear of further crypto correction, on-chain data shows that institutional investors have significantly increased their appetite for Bitcoin. For instance, BlackRock’s IBIT and Fidelity’s FBTC have led the US spot Bitcoin ETFs in cash inflows over the last few days.
Notably, the US largest bank, Goldman Sachs, announced more than $400 million in exposure to the U.S. spot Bitcoin ETFs. Additionally, the publicly-traded Japanese company Metaplanet finalized a $3.3 million Bitcoin purchase on Tuesday, holding over 303 BTCs.
Meanwhile, the more than $2.5 billion inflow of stablecoins into centralized exchanges has sparked speculation of heightened buying pressure.
What Next?
Bitcoin’s price has established an inverted triangular consolidation in the past five months, which could lead to a major bullish breakout. Today’s CPI data from the United States will offer a better idea of whether the Fed will proceed with the highly anticipated interest rate cuts next month.
From a technical standpoint, Bitcoin price has formed a macro bullish signal that could break out soon. However, the bullish sentiment could be invalidated if Bitcoin price drops below the liquify range between $48k and $50k.
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