Bitcoin’s price is still struggling to regain its upward momentum following the establishment of a new all-time high above $111,000 last week. Today, Bitcoin trades below $106,000 with a current trading price of $105,381, marking a 1.2% increase in the past day and a 5.8% decrease from its peak.

The current movement suggests a cooling-off period as traders and analysts monitor for potential market reentry points. Despite the price retreat, the mood across the market remains relatively stable, with the Crypto Fear & Greed Index still hovering in the neutral zone.

This suggests that the market is yet to enter the euphoric stage typically associated with aggressive buying sprees. While the immediate trend appears sideways, analysts are beginning to highlight certain technical and on-chain signals that may shape Bitcoin’s short-term trajectory.

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Bitcoin Short-Term Investors Watch $96.7K as Critical Support

A recent assessment by an on-chain contributor to CryptoQuant’s QuickTake platform, known as abramchart, identifies $96,700 as a crucial level of interest.

This figure aligns with the average acquisition price for short-term holders, making it a potential rebound zone if Bitcoin experiences a further dip. According to the analyst, this support may serve as a trigger point for renewed buying interest should a correction continue to unfold.

Additionally, rising Bitcoin dominance is placing pressure on alternative cryptocurrencies, including Ethereum. The analyst notes that corrections in Bitcoin often redirect capital away from altcoins, potentially weakening their short-term performance.

In this context, the broader crypto market may experience liquidity fragmentation until Bitcoin reestablishes directional clarity. Abrahchart wrote:

If liquidity is available, it is advisable to wait and observe market movements, with the possibility of entering new positions after the anticipated correction completes.

Accumulation Activity Suggests Institutional Involvement

In a separate insight shared on CryptoQuant, another analyst, Mignolet, highlights a notable relationship between movements in Bitfinex’s Bitcoin reserves and price action.

Historically, declining reserves on Bitfinex have often preceded upward trends in Bitcoin’s price, suggesting these outflows may signal increased accumulation.

On the latest occasion, around 24,000 BTC were transferred to two wallets, one of which has been officially identified by Bitfinex and Tether CEO Paolo Ardoino as belonging to 21 Capital (XXI), a Tether-backed entity.

The second wallet involved in receiving 14,000 BTC was not formally disclosed, but timing and transaction behavior suggest a similar purpose. Unlike earlier transactions often linked to cold storage adjustments, these movements appear to reflect strategic acquisitions.

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This level of accumulation, particularly by a known Tether-affiliated entity, adds another dimension to Bitcoin’s current price narrative. As institutional players position themselves, retail participants may find additional confirmation of long-term interest in the asset despite short-term fluctuations.

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A federal judge has approved a motion to suspend the lawsuit filed by a group of state attorneys general and the advocacy group DeFi Education Fund against the U.S. Securities and Exchange Commission (SEC).

The complaint filed in November alleges that the SEC acted beyond its authority in filing enforcement actions against crypto exchanges, arguing that the power the regulator asserts over digital assets belongs to individual states.

“[W]ithout Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions targeting the digital asset industry, premised on the theory that practically all purchases and sales of digital assets are ‘investment contracts.’”

On April 16th, Judge Gregory Van Tatenhove of the Eastern District of Kentucky ordered a 60-day pause on the deadlines and legal proceedings related to the case following the appointment of pro-crypto businessman Paul Atkins as the new SEC chair.

The development comes as the SEC takes a more friendly approach to the digital assets industry. The securities watchdog has already dropped numerous key crypto cases, including those involving the blockchain payments firm Ripple and the crypto exchange Kraken.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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