Bitcoin Price Forecast: Returning institutional demand puts a break above $85,000 in BTC’s sights

• Above $83,000, Bitcoin inches upwards as its recovery from the 50-day EMA near $80,786 continues.
• Following Monday’s $526 million, net inflows into US-listed BTC spot ETFs exceeded $23 million on Tuesday, pointing to renewed institutional demand.
• Easing selling pressure and strengthening bullish momentum give BTC a more constructive technical outlook.

Nearly $550 million has flowed into US spot BTC exchange-traded funds (ETFs) over the past two days, indicating a renewed build-up of buying pressure. With institutional confidence recovering, Bitcoin (BTC) is holding above $83,000 at the time of writing on Wednesday and showing signs of a bullish recovery. Diminishing bearish momentum also leaves the technical outlook pointing to scope for further gains.

Bitcoin attracts renewed institutional confidence

Inflows into Bitcoin spot ETFs point to a revival in institutional interest. According to SoSoValue, the funds attracted $23.16 million on Tuesday after receiving $526.60 million on Monday. Together, these consecutive daily inflows bring this week’s total to $549.76 million so far, compared with net outflows of $228.58 million last week.

Further evidence of BTC funds’ increasing integration into major financial markets comes from the Swiss Financial Market Supervisory Authority FINMA, which has approved a domestic Bitcoin ETF accessible to retail investors while placing priority on investor protection and transparency. This growing integration could help support capital inflows over time.

Retail confidence is also improving, judging by BTC derivatives data. CoinGlass reports that BTC futures open interest (OI) has risen by over 2% over the past 24 hours to $54.54 billion. This points to a higher notional value of outstanding contracts, attributable either to additional positioning or to a rising spot price. Over the same period, liquidations totalled $66.51 million, with short positions accounting for the largest share at $57.34 million. These figures suggest that buyers have the upper hand and lend support to the possibility of a build-up in positions. 

At 0.0087%, the OI-weighted funding rate is still positive. This indicates a willingness among traders to pay a premium for long positions, consistent with their bullish bias. 

Technical outlook: Bitcoin recovery puts $85,000 back in focus

Holding above its 50-day exponential moving average (EMA) at $80,787, Bitcoin maintains a constructive bullish bias as it changes hands near $83,382 on Wednesday. Longer-term support for the bullish trend comes from the 200-day EMA around $76,112.

The leading cryptocurrency remains above $81,182, the 50% Fibonacci retracement of the previous mid-September advance from $74,967 to $87,395. That positioning lends further weight to the continuing uptrend.

On the daily chart, momentum readings point to fading headwinds. Although the moving average convergence divergence (MACD) line sits just below its signal line, the negative histogram is shrinking. Meanwhile, the relative strength index (RSI), at 54, is moving higher above the midline.

The swing high of $87,396 provides the first upside resistance. A sustained break above it could bring the round-number $90,000 level into view, ahead of the 161.8% Fibonacci extension at $95,075.

On the downside, the first support lies at $81,182, the 50% retracement level, with reinforcement from the 50-day EMA at $80,787. Further down, demand is expected at the 200-day EMA at $76,112.

(The technical analysis of this story was written with the help of an AI tool. Know more.)