Bitcoin is once again at the forefront of discussions in the financial world. The cryptocurrency has surged to $88,500 today, stirring excitement among traders who speculate that it could reach $95,000 in the near future. However, while the mood is optimistic, caution is warranted as some analysts warn that a pullback to $80,000 may precede any major rally.
Traders Show Signs Of Greed
Market intelligence platform Santiment has noted an increase in greed among cryptocurrency investors. Mentions of Bitcoin hitting the $100,000 mark—or even as high as $159,000—have become prevalent on social media. Although this enthusiasm can be exhilarating, Santiment emphasizes that such peaks in investor greed often foreshadow a potential price correction.
As crypto has bounced nicely in the second half of March, traders have swung the pendulum back toward mild greed. After showing major fear in late February and early March following two stints of Bitcoin dipping as low as $78K, it appears that this rebound to $88.5K has… pic.twitter.com/WGvmvKSv2X
— Santiment (@santimentfeed) March 25, 2025
Earlier in the year, traders were cautious following Bitcoin’s dip to $78,000. However, the recent spike to $88,500 has shifted sentiment. Santiment suggests this may be an opportune moment for traders to consider securing profits.
Miners Hold Onto Bitcoin Reserves
Bitcoin miners seem to maintain a bullish outlook. Data from CryptoQuant indicates that there has been minimal selling activity among miners recently. Currently, miner reserves total 1.81 million BTC, valuing approximately $159 billion.
Ali Martinez, a crypto analyst, confirmed via X that no significant selling activity has been observed among miners over the last 24 hours. This trend could suggest that miners are anticipating higher prices and are opting to hold their assets for now.
Institutional interest is also contributing to the market’s upward momentum. On March 25, Bitcoin spot ETFs in the U.S. recorded a remarkable daily inflow of $27 million. BlackRock, one of the leading asset management firms, was responsible for $42 million of this inflow.
While other funds such as Bitwise and WisdomTree experienced outflows of $10 million and $5 million respectively, BlackRock’s robust demand helped steer the overall trend positively. The net assets in BlackRock’s Bitcoin spot ETF are currently above $50 billion, showcasing institutional investors’ continued enthusiasm for Bitcoin.
Analysts Expect Short-Term Fall Before Rally
Technical analysis suggests Bitcoin may face a temporary decline before achieving its next peak. The cryptocurrency is struggling to breach a resistance trendline on its 4-hour chart, indicating what experts describe as a “double top” formation. This pattern implies a potential price drop towards $85,000.
The crucial support level is noted at $86,146, identified by the 61.80% Fibonacci retracement level. If Bitcoin can remain above this threshold, analysts predict a possible rebound towards $95,000.
Featured image from Gemini Imagen, chart from TradingView
