Bitcoin consolidates near recent highs amid profit-taking and institutional caution
Bitcoin (BTC) is facing pressure, trading below $86,000 on Tuesday, as profit-taking intensifies. Corporate and institutional demand shows mixed signals, with MicroStrategy (MSTR) adding 334 BTC to its reserves while spot Exchange Traded Funds (ETFs) recorded a mild $89.90 million outflow on Monday.
Institutional demand started the week cautiously, with BTC spot ETFs experiencing a minor outflow, ending a two-day inflows streak. This trend could extend BTC's pullback if it continues. Meanwhile, MicroStrategy's acquisition of 334 BTC continues its aggressive accumulation, suggesting a bullish outlook.
Bitcoin's bullish momentum is losing steam due to rising US Treasury yields and a stronger US Dollar (USD). The 10-year US Treasury yield hit a fresh two-decade high near 5.35% on Monday, making fixed-income assets more attractive than risky assets like BTC. The US Dollar Index (DXY) reached an intraday high of $102.53, adding to the pressure on BTC.
Profit-taking activity surged to a new yearly high, as indicated by Santiment’s Network Realized Profit/Loss (NPL) metric. This spike suggests that holders are selling at significant profits, increasing selling pressure. Despite the pullback, BTC maintains a bullish near-term bias, holding above key moving averages.
Technically, Bitcoin trades at $85,834 on Tuesday, with immediate support at $85,000. The 50-day, 100-day, and 200-day Exponential Moving Averages (EMA) provide strong support at $79,430, $75,565, and $75,056, respectively. The Relative Strength Index (RSI) remains in positive territory, indicating buyers still retain control.