BTC technicals improve but short-term uncertainty remains, says BIT

Bitcoin's technical outlook has improved this week, but short-term uncertainty persists, with continued fund inflows being the key determinant for future price movements, according to an analysis by cryptocurrency financial services firm BIT, formerly known as Matrixport. The firm noted that BTC is currently rebounding near a key support level, with indicators like the Relative Strength Index (RSI) and MACD showing buy signals. However, trading volume remains insufficient, and a breakout above the 200-day moving average (MA) on the daily chart will be crucial. While continued inflows into spot ETFs and signs of increasing institutional investment are apparent, there is also potential for short-term profit-taking. For now, BIT suggests a wait-and-see approach is most effective, pending confirmation of a breakout above key resistance levels. For the medium to long term, investors could consider buying while monitoring improvements in technical indicators and fund flow trends, the firm explained.