Bitcoin has started the year on a strong footing, surging to a two-month high today as the near-term rebound resumes. The move signals a renewed bid for the world’s largest cryptocurrency after a period of weakness in Q4 last year.
A key driver has been a sharp pickup in institutional flows. U.S. spot Bitcoin ETFs recorded their largest single-day inflows in three months, totaling USD 753.7m on Tuesday. The surge suggests investors are rotating back into risk assets following year-end portfolio rebalancing.
Beyond positioning effects, demand is also being supported by rising geopolitical uncertainty. With tensions intensifying since the start of the year, some investors appear to be revisiting Bitcoin as an alternative hedge alongside traditional safe havens.
A third, more structural factor may also be emerging. Questions surrounding US institutional stability — particularly renewed scrutiny over the Fed — could encourage gradual diversification away from dollar-linked assets, lending longer-term support to “itcoin demand.
Technically, as Bitcoin’s rebound from 80,492 resumed, the focus is now firmly on cluster resistance zone around 98k. That area includes 38.2% retracement of 126,289 to 80,492 at 97,986, and 100% projection of 80,492 to 94,570 from 84,380 at 98,458.
Decisive break of 98k zone is needed to solidify the case that “itcoin is reversing the whole down trend from 126,289. In that case, strong rise would be seen back to 61.8% retracement at 108,794 and above.
However, rejection by 98k zone will setup another falling leg to resume the fall from 126,289 through 80,492 at a later stage.
