Bitcoin Rebound Puts Focus on $80,000 as Trend-Reversal Test

Bitcoin has continued to rebound from the $78,000 range, fueling speculation that its downtrend may be nearing an end. The key question now is whether it can hold above $80,000.

Cointelegraph reported on April 23 that Bitcoin recently rose to around $79,000, a sign of improving market sentiment. A technical reversal, however, would require a daily close and sustained trading in the $80,000 to $83,000 range.

The rebound has been linked to improving market structure and fresh institutional inflows. Spot Bitcoin exchange-traded funds have posted about $2.03 billion in net inflows so far in April, while Strategy bought 34,000 Bitcoin for about $2.54 billion. Morgan Stanley's Bitcoin ETF drew $153 million in its first two weeks after launch, bolstering expectations for a recovery in institutional demand.

Investors are divided on how to interpret the ETF flows. Bloomberg ETF analyst Eric Balchunas said flows have turned positive across all time frames. Bitwise Chief Investment Officer Matt Hougan, by contrast, said institutional long-position capital has stayed in place and that recent outflows were driven by short-term arbitrage money.

Technical resistance remains pronounced. Some analysts say the current advance could still be a bear-flag rally within a broader downtrend, though it may also mark part of a medium- to long-term bottoming process.

Order-book data suggest buying pressure is gradually strengthening. TRDR, an on-chain and trading-data analytics firm, said bid orders are forming at higher levels than before, indicating that the market floor is gradually rising. The market is now focused on whether Bitcoin can break above $80,000.