Bitcoin (BTC) is demonstrating renewed upward momentum, surpassing key resistance levels and confirming a breakout pattern reminiscent of previous significant rallies.
Trading above $94,000, the price is buoyed by robust spot market purchases and growing institutional engagement.
Since early April, Bitcoin’s price trajectory has shown consistently higher lows and higher highs.
Trading volume has notably increased following periods of consolidation, signaling strengthening demand from both individual and institutional investors.
On the hourly price chart, a clear bullish trend line provides support near the $94,200 level.
According to TradingView data, Bitcoin has consistently traded above its 100-hour simple moving average, indicating underlying strength.
Analysts suggest that if Bitcoin overcomes the $95,500 resistance area, the next likely price targets are $96,250, followed by $97,500 and $98,800.
Technical indicators support this view, with the hourly MACD gaining bullish momentum and the hourly RSI holding above the 50 level.
Immediate support rests at $94,200, with a more significant support zone around $93,500.
Institutional Accumulation Fuels Rally
Significant institutional buying activity further validates the breakout. Strategy, led by Michael Saylor, announced the acquisition of an additional 15,355 BTC during April for $1.42 billion, averaging $92,737 per coin.
Saylor confirmed via X that as of April 28th, the company holds 553,555 BTC, acquired at an average price of $68,459, bringing the total value of their Bitcoin holdings above $50 billion.
This purchase increased Strategy’s Bitcoin position by 3%.
According to Strategy’s Form 8-K filing, the company’s Bitcoin investment has yielded 13.7% year-to-date, with a target of 15% by 2025. Market watchers observe that the company’s stock price could potentially continue to correlate positively with Bitcoin’s performance.
Spot Market Overrides Short-Term Concerns
Despite the positive momentum, some traders express caution due to the upcoming Federal Open Market Committee (FOMC) meeting scheduled for May 7th.
Historically, Bitcoin prices have sometimes reacted negatively or shown volatility around FOMC meeting dates due to shifts in investor sentiment.
Analyst @astronomer_zero noted that FOMC events can induce temporary pullbacks even within broader uptrends.
The analyst emphasized that the current larger quarterly price movement is driven by higher time frame factors and strong spot market buying, which are typically more influential than short-term, intra-month fluctuations like FOMC-related volatility.
“The quarterly move is spot-driven, powerful, and outweighs the short-term FOMC risks,” he stated.
The market exhibits persistent spot buying pressure, with phenomena like negative funding rates and localized dips establishing stronger foundations for continued price increases.
The data indicates that shifts toward a spot market premium have consistently supported upward price pressure.
Favorable Macro Environment
Broader macroeconomic conditions also appear supportive of Bitcoin’s continued strength.
Factors cited include the expansion of the global M2 money supply, rising institutional adoption, and the narrative of Bitcoin as a scarce asset, all potentially encouraging investment.
Analyst Colin Talks Crypto referenced Global M2 data, Tether dominance, and technical analysis to support the view that Bitcoin could reach new all-time highs in the coming months.
Standard Chartered’s Geoff Kendrick has offered bullish forecasts, predicting a potential $120,000 Bitcoin price in the second quarter and projecting a reach of $200,000 by the end of 2025 if current trends persist.
Furthermore, long-term holders are reportedly showing reluctance to sell, constricting the available supply and adding to upward pressure.
Continued significant inflows into Bitcoin-related ETFs and ongoing accumulation by firms like Strategy reinforce the bullish outlook.
Also Read: Bitcoin Pushes For $100k, Endangering Over $3 Billion in Short Positions
