Bitcoin Faces Key Resistance Amid Market Shifts

Bitcoin supply drops off exchanges, easing sell-off pressure but short-term trends remain under key resistance near $94K.

Standard Chartered cuts 2025 BTC target to $100K as institutional demand slows and ETF inflows hit a low of 50,000 BTC.

Analysts warn of Dead Cat Bounce below $80K if EMA21 support fails, highlighting cautious trading amid downtrend risks.

Bitcoin’s market value hovers around $90,000 as significant supply moves off exchanges. According to Santiment, over the past year, a net total of 403,200 BTC left exchanges, reducing the total supply by 2.09%. Hence, fewer coins on exchanges historically limit major sell-offs, reducing downside pressure on Bitcoin’s price

Meanwhile, the market anticipates volatility from upcoming Federal Reserve decisions, particularly a predicted 25 basis-point interest rate cut. Reductions usually favor risk assets like cryptocurrencies, yet the market may already price in the event, leaving limited upside.

Analysts provide varied perspectives on Bitcoin’s short-term trajectory. CryptoBullet notes that on the 1-month chart, the EMA21 acts as a critical support level. “When $BTC tops out and prints its first wave of a Bear Market, it usually finds support at the EMA21 on the monthly timeframe and bounces back up,” CryptoBullet explained. Consequently, the asset could experience a Dead Cat Bounce before moving below $80,000

Additionally, Dami-Defi emphasizes that buying during a downtrend carries risk: “Until $BTC clears this downtrend, you’re not buying a dip, you’re buying a downtrend.” The weekly chart shows indecision with large volumes, while the 4-hour chart confirms the prevailing downward trend.

Institutional Demand Slows, Affecting Long-Term Outlook

Standard Chartered revised Bitcoin’s multi-year price targets amid weaker-than-expected institutional demand. The bank now forecasts Bitcoin reaching $100,000 by the end of 2025, down from $200,000. Its long-term 2030 outlook remains $500,000. Analyst Geoffrey Kendrick explained that aggressive corporate purchases, like MicroStrategy’s treasury activity, have “run its course.”

Consequently, ETF inflows now drive most future price movements. Quarterly inflows fell to 50,000 BTC, a steep decline from 450,000 BTC per quarter in late 2024. Moreover, political pressures on the Federal Reserve continue to influence risk-on assets.

BTC faces resistance around $94,000 and recent highs. Breaking this could trigger a meaningful bounce. Conversely, dropping below recent lows may drive new lows. Hence, traders must closely monitor trendline breaks and volume levels.

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