Bitcoin’s recent rise to $86,000 has made investors feel hopeful again which could mean the market mood is changing. After rising from a low point near $75,000 in early April BTC has regained a large part of its losses. On the surface, price action may look bullish, but experts warn that it’s still too early to call this a complete trend reversal.
Demand Comes Back—Cautiously
Based on the net 30-day exchange inputs and outflows, recent data shows a slight rise in Bitcoin’s apparent demand. After a long time of low demand, there are signs that things are starting to get back to normal. Analysts are still warning that this might be a break in the selling rather than a real rebound. Looking back at the 2021 cycle, we can see that weak demand often comes before months of flat movement before a confirmed recovery.
Liquidity and Volume Are Still Lacking
Liquidity is still weak, a key part of a long-term bull run. Bitcoin trades around 30,000 BTC per day for the spot and 400,000 BTC per day for the future. This is a lot less than it was during the bullish summer of 2021. With market cap growth slowing to 0.80% every month, Glassnode says there isn’t much fresh capital in the market.
ETF Outflows and Caution from Institutions
Institutional investors are still not sure what to do. Since April 3, over $870 million has left U.S. spot Bitcoin ETFs, with only a small return on April 15. Even so, trade volume is only 18% below its 30-day average, which suggests that investors are still interested, even though capital isn’t coming in as fast as it used to.
Key is Resistance at $86.3K
Long-term investors are confident in Bitcoin because it has stayed above $80,000, but the next task is to break through the $86,300–$86,500 resistance range. CoinGlass has mapped out this dense cell wall that must be broken through to prove bullish momentum.
Conclusion
Bitcoin’s rise to $86,000 shows that investors are still confident, but the market cannot confirm a trend turnaround without a surge in liquidity and spot volume. If BTC doesn’t clear $86,300 and strong demand backs it up, it’s best to be cautious.
