Bitcoin Breaks Through $80,000 Backed by Institutional Inflows; Analysts Divided on Sustainability of the Rally
Tapbit news, September 24 — Bitcoin recently broke through $80,000 and briefly touched $87,300. Analysts believe this rally has been supported by institutional capital and strong inflows into spot ETFs, but indicators such as trading volume, market breadth, and derivatives positioning show that there is still disagreement over whether the rally can continue.K33 said that Bitcoin's recent pullback has been significantly smaller in both magnitude and duration than the major bear markets of 2013, 2017, and 2021, and that the current cycle low may already be established. K33 also noted that Bitcoin still has room to catch up with gold and US equities.21Shares believes that the US SEC's introduction of an "innovation exemption" and the CFTC's advancement of related rulemaking provide further regulatory tailwinds for the crypto market. K33, meanwhile, believes that the fading of uncertainties such as the Federal Reserve's interest rate decision and the vote on the CLARITY Act also helped the market complete its breakout.However, Nexo remains cautious, pointing out that recent market trading volume has declined, the breadth of the rally has narrowed, and derivatives leverage is also rising, which could expose Bitcoin to risks of profit-taking or a temporary correction. Analysts at Capital.com believe that $87,000 to $88,000 is the near-term resistance zone, with the next target at $90,000 after a breakout, while on the downside, focus is on support at $84,000 to $85,000 and $80,000.Fundstrat founder Tom Lee said that the crypto bull market has already begun, arguing that this round of gains is being driven by factors including AI capital flowing back into the crypto market, improvements in crypto fundamentals such as tokenization and AI, and the end of the four-year cycle.[Source]
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