Bitcoin's (BTC) price recently experienced a 7.8% decline, dropping to $60,000. However, as the king of cryptocurrencies recovers from this drawdown, support from a significant group of investors could push the price higher.
Institutional investors play a key role in driving Bitcoin’s upward momentum, and their influence might propel BTC toward the $70,000 mark.
According to data from Glassnode, Bitcoin exchange-traded funds (ETFs) now hold over $58 billion worth of BTC. This volume accounts for approximately 4.6% of Bitcoin’s circulating supply, indicating strong demand for regulated exposure to the cryptocurrency.
Bitcoin’s overall macro momentum appears favorable for a potential price rise. The net realized profit/loss indicator, which tracks investor sentiment, recently noted a downtick, signaling that profit booking is slowing down. This shift suggests that selling pressure is decreasing, providing Bitcoin the necessary breathing room for a comeback.
Bitcoin is currently trading at $62,353, just above the crucial support level of $61,868. While this is a positive sign, BTC still faces a significant barrier at $65,292 before it can aim for $70,000.
However, if institutional demand weakens or large investors pull back, Bitcoin may struggle to break past $65,292, potentially invalidating the bullish outlook.
