Despite recent geopolitical developments and DeFi hacking incidents, the outlook for bitcoin remains bullish, with the cryptocurrency currently trading above $75,000. Last week, U.S.-listed spot ETFs saw inflows of $996 million, indicating strong interest from institutional investors. For a substantial price increase to occur, these inflows must be sustained over time. According to Timothy Misir, head of research at BRN, consistent ETF inflows are a key indicator of structural demand, while intermittent flows may signal tactical positioning.
Bitcoin's price has remained relatively stable over the past 24 hours, with similar patterns observed in other major tokens such as ether and Solana. However, the DeFi platform Aave's token has dropped 1% to $90 following the KelpDAO hack.
The pressure on bitcoin is partly due to negative reactions in stock markets to news about Iran, which has reduced risk appetite. Meanwhile, traders are building short positions, betting against a breakout, which could potentially lead to a 'short squeeze' if prices hold steady.
In the altcoin market, Solana's weekly price chart shows a key level at $95.16, which has acted as resistance since it was broken in early February. The fact that Solana has not yet climbed back above this level suggests sustained bearish sentiment and potential for deeper losses. A strong move above this level, backed by increased trading volumes, is needed to invalidate the bearish outlook.