With a sudden recovery overnight, Bitcoin is back above the $97,000 mark. Marking an intraday recovery of 0.6%, the BTC price trades at a market value of $97,226.
Despite the short-term recovery hinting at a potential bounce back, the institution supports lakhs for Bitcoin. Amid such conditions, will the BTC price manage to hit the $100,000 mark? Let’s find out.
Bitcoin Price Action and Technical Analysis
In the daily chart, the BTC price trend showcases a bullish reversal from the local support trend line. This completes a bullish reversal with the morning star pattern.
Completing the morning star pattern, Bitcoin formed a 1.08% bullish engulfing candle to reach the 38.20% Fibonacci level. This level is priced at $96,612.
The intraday recovery of 0.58%, driving the BTC price higher to $97,000, completes a breakout above the 38.20% Fibonacci level. Currently, the recovery run in Bitcoin aims to reach the 50% Fibonacci level at $98,490.
With two consecutive bullish candles, the momentum is clearly increasing. Furthermore, the daily RSI line is nearing the halfway level, reflecting a surge in momentum.
BTC Price Targets
As Bitcoin rises back from the local support trendline, it is now challenging the 20-day EMA at $97,543. The recent crossover between the 20-day and 50-day EMA lines reflects the short-term reversal in Bitcoin.
However, a bullish continuation above the 50-day EMA at $97,817 will reinstate the bullish alignment. As per the Fibonacci levels, a breakout above the 50% Fibonacci level will likely increase the chances of Bitcoin reclaiming the $100,000 mark.
On the flip side, the crucial support levels for Bitcoin remain the local support trend line near the $96,000 mark and the $94,377 horizontal level.
ETF Outflows Spark Concerns Amid BTC Recovery
Despite Bitcoin price action reflecting a potential turnaround, the US spot Bitcoin ETFs registered a net outflow on February 19. Out of the 12 Bitcoin ETFs in the US market, 4 registered a net outflow, while the rest of the ETFs maintained a net-zero flow.
The biggest seller was Fidelity, with an outflow of $48.69 million, Valkyrie, Ark and 21 shares, and VanEck drove the net outflow to $71.07 million. Despite the short-term offloading phase in the ETF market, the US spot Bitcoin ETFs hold $112.59 million worth of Bitcoin. This accounts for 5.90% of the Bitcoin market cap.