Bitcoin Price Overview
Bitcoin (BTC) is trading near $87,700 after dropping more than 36% from its record high of $126,199 in early October. The price movement remains stable due to mixed flows in Bitcoin spot Exchange Traded Funds (ETFs). This week, BTC is expected to consolidate as US markets close early for Thanksgiving.
Institutional Investor Sentiment
Institutional investors show mixed feelings about Bitcoin this week. Bitcoin spot ETFs experienced both inflows and outflows. On Monday, ETFs saw $151.08 million inflows, while Tuesday saw $128.64 million inflows, indicating uncertainty among investors.
Strategy shared on Twitter that even if Bitcoin falls to $74,000, its holdings would still cover convertible debt by 5.9 times. If BTC drops to $25,000, the coverage would be 2 times, showing strong financial stability despite price drops.
Bitcoin’s Recent Price Trends and Outlook
Bitcoin began the week slightly higher after four negative weeks, marking its largest drop since 2022. Its 36.24% decline started from the October 6 high of $126,199. A K33 report notes that Thanksgiving holidays may allow Bitcoin to consolidate this week.
Bitcoin has underperformed the Nasdaq index in 21 of the last 30 trading days, a rare event not seen since July 2024. Previous periods of such underperformance were linked to negative news like Mt. Gox selling and Grayscale outflows.
The BTC price compared to the Nasdaq’s QQQ ETF fell to its lowest since November 5, 2024. The report calls Bitcoin a strong buy at current levels for long-term investors, as its price remains disconnected from its fundamentals.
BTC found support near the key $80,000 level last Friday. It recovered to close above $88,300 on Monday and is steady near $87,700 Wednesday.
If Bitcoin keeps rising, it might test the $90,000 resistance. The Relative Strength Index (RSI) indicates reduced selling pressure, and the MACD shows signs of a possible upward move. If the price falls, support at $80,000 is crucial.
