Bitcoin Faces Sell Pressure as Price Hovers Near $96K; Spot ETFs See $676M Inflows

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Let's dive into what's happening with Bitcoin. Many holders are eager to cash in on the significant gains BTC saw last month. However, this selling pressure could lead to some market turbulence, according to analyst Valentin Fournier from BRN.

He pointed out, "The Bitcoin spot sell wall currently exceeds 4,000 BTC and shows no signs of diminishing. Bitcoin's price has remained relatively stagnant this week." This sell wall is a key indicator of the selling pressure that Bitcoin needs to overcome to break through the six-figure mark.

As of now, Bitcoin's price has climbed back above $96,000 after dipping from $97,000, according to CoinGecko. In the past day, traders have moved about $85 billion worth of BTC. That’s a staggering 40% increase compared to this time last month!

Crypto analytics platform IntotheBlock has also noticed some interesting trends. They reported that Bitcoin exchange flows indicate investors are getting ready to cash out. Previously, the flow of BTC on and off trading platforms showed a net outflow. But on Tuesday alone, users transferred $230 million worth of BTC into exchange wallets.

Even with signs of potential volatility, the broader crypto market continues to thrive. Large-scale investors remain active. Fournier mentions, "As Bitcoin and Ethereum build strong support at these elevated levels, the overall crypto market is expanding, driven by impressive altcoin performance." He believes Bitcoin will benefit from ongoing institutional inflows and may attempt a breakout soon.

Speaking of altcoins, Tron and XRP have been on fire! Tron hit an all-time high on Tuesday, while XRP jumped to a seven-year high on Monday.

Institutional interest in spot Bitcoin ETFs is also strong, despite the looming sell pressure in spot markets. Just yesterday, Bitcoin ETFs saw inflows of $676 million, getting closer to matching the BTC holdings of Bitcoin's pseudonymous creator, Satoshi Nakamoto.

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