Bitcoin's recent surge stalled around the $78,000 mark, a critical resistance level, according to Schwab's digital assets strategist. The $83,000 level, representing the average cost basis for spot Bitcoin Exchange-Traded Products (ETPs), is identified as the next major hurdle.
These price points are significant as they represent the average cost for active investors, suggesting many may be inclined to sell to recoup losses if prices reach these levels. This outlook comes despite substantial inflows into crypto funds, totaling $1.4 billion last week, the strongest weekly performance since January. U.S.-led inflows, particularly from major financial institutions like Morgan Stanley and Goldman Sachs expanding their Bitcoin ETF offerings, continue to fuel institutional demand.
However, persistent headwinds such as tax season portfolio rebalancing and geopolitical uncertainties could temper upside potential. Analysts await the passage of the CLARITY Act, a legislative effort aimed at regulating digital assets, as a potential catalyst to reset market momentum. Until then, Bitcoin may remain range-bound between these key resistance levels.