Despite recent headlines dominated by Iran-related news and DeFi hacks, the outlook for bitcoin remains positive, with the cryptocurrency trading above $75,000. Last week, U.S.-listed spot ETFs saw significant inflows of $996 million, up from $786 million the previous week, indicating strong institutional interest.
For a substantial price increase to occur, this trend must be sustained. According to Timothy Misir, head of research at BRN, 'sustained inflows signal structural demand, while intermittent flows indicate tactical positioning.' Bitcoin's price has held steady 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 linked to negative reactions in stock markets to news about Iran, which has reduced risk appetite. Meanwhile, traders are building short positions, potentially fueling a 'short squeeze' if prices hold steady.
The DeFi dominance rate has remained flat at around 3%. In technical analysis, Solana's weekly price swings show a key level at $95.16, which has acted as resistance since early February. A strong move above this level, backed by increased trading volumes, is needed to invalidate the bearish outlook.
The next major support level is seen at $50, indicating potential for deeper losses if this level is not surpassed.