Bitcoin Price Extends Gains to $85,000 Despite Challenging Macro Backdrop

Bitcoin's price extended its gains on Monday, reaching $85,000 after surging nearly 6% and closing above a key resistance zone in the previous week. This rally comes despite a challenging regulatory and macroeconomic backdrop, with institutional demand showing relative resilience.

According to SoSoValue data, spot Bitcoin Exchange Traded Funds (ETFs) recorded a mild inflow of $6.21 million last week, following an outflow of $462.73 million in the previous one. This suggests that institutional investors are still interested in buying into Bitcoin despite the recent setbacks.

However, analysts warn that the rally appears driven by short covering, trader repositioning, and renewed leverage, leaving Bitcoin vulnerable to a pullback if the breakout fails. Dean Chen, an analyst at Bitunix, noted that trading volume has not expanded significantly alongside the price advance, raising concerns about the breakout's strength.

BTC/USDT weekly chart shows positive momentum without reaching overbought conditions, with the Relative Strength Index (RSI) around 61 and the Moving Average Convergence Divergence (MACD) histogram firmly in positive territory. If Bitcoin breaks above the key resistance zone of $82,282-$82,800 and holds it as support, it would strengthen the case for a structural recovery.