Bitcoin (BTC) and the crypto market have recovered this week, with the flagship cryptocurrency trading just above $98,000. BTC is marginally up over the past 24 hours as it looks to build momentum and reclaim $100,000. BTC still faces selling pressure and could turn bearish if the price is rejected from $100,000, leading to a potential decline to $90,000. However, its recovery comes after a significant correction. 14,000 BTC Moved After Years Of Inactivity Data from CryptoQuant has revealed that 14,000 BTC that had been inactive for years were moved. The large volume of BTC has not been transferred to an exchange wallet, indicating they are not meant for immediate sale. However, investors must remain cautious as the average acquisition price of the coins is low and could influence the holder’s decision regarding any sale. CryptoQuant data also showed BTC registered the largest net outflow since 2022. The data shows that the Bitcoin Exchange Netflow has returned to levels last seen during the FTX collapse. Additionally, the supply of BTC on exchanges has also registered a drop. The QCP Capital report on Monday stated that with Canada and Mexico among the US’s top suppliers of aluminum and steel, the latest tariffs have cast doubt on last week’s delay and could reignite trade tensions between the countries. “Following DeepSeek’s move two weeks ago and last week’s tariff-driven volatility. This time, Trump’s announcement of a 25% levy on steel and aluminum briefly unsettled markets ahead of Powell’s testimony and CPI data.” Institutional BTC Supply Dwindles Spot Bitcoin ETFs have accumulated over 1 million BTC over the past year and manage over $113 billion worth of Bitcoin. Additionally, a growing number of publicly traded companies are hoarding the asset as part of their corporate treasuries, with MicroStrategy approaching close to 500,000 BTC . Discussions about potential strategic Bitcoin reserves have also gathered pace. Bitwise believes that sooner or later companies will have to convince everyday BTC holders to part with their assets. “If companies and governments want to buy Bitcoin, they’ll largely have to buy it from individuals who are willing to sell. That market dynamic between buyers and sellers could get very interesting.” An account called “The Modern Investor” posted that Over-The-Counter (OTC) markets have only a small amount of BTC left, and a few more large purchases by entities could exhaust all institutional supply. “There’s ONLY 140,000 BTC left on OTC markets. If Microstrategy makes three more purchases, ALL OTC BTC is depleted. If the ETFs accumulate as much as they did in January, OTC BTC is depleted. If the U.S. and 15 states begin to buy Bitcoin… you get the idea. There’s almost no bitcoin left even for institutions.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) is trading around the $98,000 level as investors monitored US trade policy shifts and waited for Federal Reserve Chair Jerome Powell’s comments on tariffs and inflation. US President Donald Trump imposed 25% tariffs on steel and aluminum coming into the US, while tariffs on China had already commenced earlier in the month. Fed Chair Jerome Powell is set to speak on Tuesday at the semiannual monetary policy testimony before the Senate Banking Housing and Urban Affairs Committee. The speech will be closely monitored for comments on tariffs and inflation. Alankar Saxena, co-founder and CTO of Mudrex discussed BTC’s latest price action, stating, “Trading near $98,000, Bitcoin is steadily building momentum to reclaim the $100,000 mark. While the uptrend continues, the testimony by Federal Reserve Chair Jerome Powell to the House Financial Services Committee could shape the market sentiment. Key economic data, including CPI figures, will further determine market direction. Bitcoin must hold above $96,000 to maintain its upward momentum.” BTC is currently navigating a critical zone and has found support at around $96,000. BTC has witnessed an uptick since Monday, with the price inching towards $100,000. However, despite momentum building, BTC remains confined between $90,000 and $108,000. The flagship cryptocurrency must break out of this range to establish a long-term trend. BTC made a strong recovery after Monday’s drop to an intraday low of $91,274, rising nearly 4% to reclaim $100,000 and settle at $101,579. Despite its recovery, the price was back in the red on Tuesday, dropping 3.54% to go below $100,000 and the 50-day SMA and settle at $97,979. BTC continued to fall on Wednesday, registering a drop of 1.34% and settling at $96,668. BTC attempted to reclaim $100,000 on Thursday, rising to an intraday high of $99237. However, it failed to stay at this level and dropped to $96,641. Source: TradingView BTC briefly crossed $100,000 on Friday as it rose to an intraday high of $100,222 before dropping to $96,634. Price action remained muted over the weekend, with the price dropping marginally on Saturday and rising marginally on Sunday, moving to $96,537. BTC recovered on Monday as it started the week with an increase of nearly 1% and settled at $97,468. The current session sees BTC marginally up as it struggles to move past the 50-day SMA and push toward $100,000. If BTC moves past $100,000, its next stop will be $105,000. A break above this level could see a retest of its all-time high. However, if sentiment turns bearish, the price could dip to $90,000. The RSI is currently at 45, just below the neutral zone, while the MACD is bearish. However, it could flip to bullish if buyers retain control. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
