Bitcoin Pauses Before Key Support Level as Institutions Accumulate

Bitcoin remains below the $106,000 mark after reaching a peak over $111,000 last week, exhibiting a slight recovery of 1.2% to $105,381 but still down 5.8% from its high. This indicates a pause in its upward momentum, with market sentiment staying neutral as per the Crypto Fear & Greed Index, suggesting that the market hasn't yet entered euphoria but is holding a sideways trend. Analysts identify $96,700, aligned with short-term holder average purchase prices, as a key support level. This could serve as a rebound zone if Bitcoin dips further, potentially sparking renewed buying activity. Meanwhile, Bitcoin's rising dominance is suppressing altcoins such as Ethereum, with capital flows potentially shifting away from alternative cryptocurrencies until Bitcoin shows clearer directional signs. On-chain signals reveal institutional involvement, notably through movements on Bitfinex, where significant BTC reserves have been transferred—particularly to wallets linked with Tether-backed entities—as part of strategic accumulation. These large acquisitions suggest long-term institutional interest, which could underpin future upward trends. Overall, the current technical and on-chain indicators imply a cautious market with opportunities for strategic entry following a probable correction. Patience and close monitoring of support levels and institutional activities are advisable for traders and investors alike.